Tacking on the Holding Period

Tacking on the Holding Period means:
a provision whereby, when a taxpayer acquires an asset as a gift, the holding period of the previous owner is tacked onto the new owner's holding period.

Example of Tacking on the Holding Period:

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After Sam has held some stock for 4 months, he gives the stock to his son. The son starts with a 4-month holding period in the stock, so only 8 more months of holding is required for a 1-year holding period.