holding period


Also found in: Encyclopedia.

Holding period

Length of time a security is held.

Holding Period

1. In a long position, the period of time during which one owns a security. The holding period is important to calculating an investment's returns and performance. The holding period also applies to taxation on capital gains, as long-term investments are not taxed as heavily as short-term ones.

2. In a short sale, the period of time between the borrowing of securities and the return to their owner. That is, the holding period is the entire time elapsed for all the transactions of a short sale.

holding period

The length of time during which a security is owned.

Holding period.

A holding period is the length of time you keep an investment.

In some cases, a specific holding period is required in order to qualify for some benefit. For example, you must hold US savings bonds for a minimum of five years to collect the full amount of interest that has accrued.

holding period

(1) A time period important in the law of adverse possession,with its own peculiar rules for calculation. See adverse possession for more information. (2) A period of time one owns property, important in tax law for determining tax rates and benefits and for disallowance of some benefits.

Examples:

• Property exchanged in a 1031 exchange by related parties has a 2-year holding period before it can be sold; otherwise there will be adverse tax consequences.

• Banks have a 21-day holding period before sending taxpayer bank deposits to the IRS pursuant to a garnishment.

• Property sold after a holding period of 1 year or less will result in short-term capital gains or losses.

• Property sold after a holding period of more than 1 year will result in long-term capital gains or losses.

• Property sold after a holding period of more than 5 years will result in super-long-term capital gains or losses.

• Property acquired by inheritance will be treated as if it were held for longer than 1 year.

Holding Period

The period of time property has been owned for income tax purposes. The holding period determines if gain or loss from the sale or exchange of a capital asset is long or short term.
References in periodicals archive ?
Determining Partner's Holding Period in Partnership Interests Acquired From Property Contributions
This paper examines the impact of holding period as a source of portfolio diversification.
Key Words: Margin Borrowing, NASDAQ, Holding Period, Granger Causation, Feedback Relationship, Cointegration
Holding period of a security has also been defined and it has been mentioned that capital gains on sale of securities shall be reckoned from the date of acquisition (whether before, on or after the 30th day of June 2010) to the date of disposal of such security falling after the 30th day of June 2010.
The specific method used affects basis, gains or losses, and holding periods.
This property's purchase contract's one-year holding period began on the date that the contract was signed, not on the date that the property's purchase escrow closes.
Scott Sorrentino, president of the North Hollywood-based Rescue & Humane Alliance, added that the dogs being chosen for the program are often the ones most likely to find homes and so the holding period and transport actually decrease their chances of success.
The longer holding periods permitted in the final rule allow some flexibility for FHCs to adjust their investment exit strategies to account for fluctuations in market conditions.
If stock acquired through the exercise of an ISO (option stock) is used to exercise an ISO, and the stock holding period requirements for ISO treatment (i.
Before the effect of an investor's holding period on beta is examined, another aspect regarding the use of beta bears mentioning.
It is important to distinguish the holding period because once discount points are introduced, the cost is affected by the length of time the borrower holds the mortgage.
121 exclusion of gain will not apply to any gain allocated to a nonqualified holding period.