I have 2 houses and I live in both of them. Neither one is completely paid off, so how do I pay Zakat on them?

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If you actively live in both houses or your dependents, then there is no Zakat due. However, if it is used for rental, or as a long-term investment that would be sold, then there is Zakat due on the second house – rental impacts the present year, and the long-term investment impacts the year cash proceeds are realized from the sale.