Holding Period
Holding Period means:
the length of time that an investment is owned or expected to be owned. The holding period is important in determining whether a gain or loss from the sale or exchange of a capital asset is long-term or short-term. For tax purposes, the holding period generally begins and ends on the trade date of the purchase and sale transactions. Former IRC (check if this IRC provision is current here) §1223.
See also other Tax Terms and Definitions in U.S.A.
capital gain; capital loss.
Length of time an asset is held. For investment property, the holding period begins the day after the day the property is acquired (trade date) or receipt of title and includes the date of disposition, transfer, or sale.
The period of time the taxpayer own an asset for purposes of determining whether profit or loss on its sale is a short- or long-term capital gain or loss. Sales of assets owned one year or less produce short-term results. The sale of assets owned more than 12 months produces long-term results. The holding period begins on the day after the taxpayer purchase an asset and ends on the day the taxpayer sell it. If the taxpayer buy on January 4, for example, his or her holding period begins January 5. If the taxpayer sell the following January 4, the taxpayer have owned the asset for exactly one year . and are stuck with short-term treatment. To be eligible for the gentler long-term tax treatment, you'd need to hold on until January 5, so that the taxpayer have owned the asset for more than one year. See capital gain.
U.S. and other Developed Countries International Tax Meaning
The length of time that an investment is owned or expected to be owned.
See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.
Description and Definition of Holding Period
The length of time which an asset is owned and which generally determines long or short term capital gain treatment. The length of time you hold an asset. The holding period begins on the day after you purchase an asset and ends on the day you sell it. To be eligible for the lower long term capital gains tax treatment you need to hold an asset for more than one year.
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