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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Re: Holding period on stock resulting from split Date: 12/9/1997 3:38 PM
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How is the holding period calculated for a new share resulting from a stock split? Does it have to
age 18 months to qualify as a long term capital gain/loss?>>

KAT provided you with a terrific response on two points:

1. The holding periof of the new "split" shares tacks on to the holding period of the original shares, and

2. Long term capital gain is still defined in the tax code as more than one year...even though you get a better tax rate if you hold an asset for more than 18 months. It's going to take some time for the terminology to cath up with the facts of the issue. Many people (even tax geeks) are beginning to use the terms "short term/mid term/long term". I have even caught myself saying "mid term" (althought I'm trying to stop it). But the official "long term" designation has a much broader impact on the entire tax code than just the capital gains issue.

TMF Taxes
Roy
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