Message Font: Serif | Sans-Serif
No. of Recommendations: 1

How to Calculate a Holding Period

By Roy Lewis (TMF Taxes)
April 22, 2005

If you've spent any time reading my tax articles or visiting the Tax Strategies discussion board, you've certainly come across the term "holding period." The holding period of virtually any asset is an important concept that you'll want to understand in order to make smart tax choices.

Calculating the length of time you've held an asset is a fundamental component of the tax treatment of capital gains and losses. This is because the capital gain and loss provisions of the Internal Revenue Code distinguish between short-term and long-term gains and losses. Correctly classifying gains and losses is essential to correctly calculating your net capital gains or losses. That's why the holding period is so important...
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.