holding period

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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.


• 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 ?
Deals of $1 billion or more underwent the biggest change in average holding periods since 2006, from a low of three years in 2008 to a high of seven years in 2014
These rules generally provide that the holding period of a partnership interest will be divided if a partner acquires portions of an interest at different times, or if an interest is acquired in a single transaction that gives rise to different holding periods under Sec.
The stock/bond mix of the target retirement fund portfolios was reasonably close to those of the theoretically optimal portfolios for holding periods of up to 10 years.
Taxpayers should compare the tax consequences to identify the method that yields the most favorable tax outcome, looking at basis, holding periods, and character of assets or interests transferred.
As investor holding periods lengthen, however, short-term risks tend to become less relevant, partly because many short-term price movements tend to offset each other over a complete business cycle.
Thus, reporting shareholders of controlled foreign corporations (CFCs) must seemingly disclose the CFC's participation in "listed transactions," transactions offered under conditions of confidentiality, transactions with contractual protection, transactions generating section 165 losses, and transactions involving brief asset holding periods.
In this paper we examine the market reaction to the 1997 Tax Relief Act in order to investigate whether firms with higher future dividend yields and longer average holding periods benefit less from a capital gains tax reduction.
The GLB Act itself contemplates that investments would not be held indefinitely, and the agencies believe that it is better to establish a regulatory safe harbor that gives assurance regarding holding periods, and thereby allow FHCs to plan their investment strategies, than for the agencies to forego providing regulatory guidance and impose decisions on holding periods for each investment on an ad hoc basis through the supervisory process.
They also explain the rules relating to the holding period of a partnership interest.
Assume that the Black-Scholes costs are $20, $27, and $30 for holding periods of 6, 8, and 10 years, respectively.
Specifically, it is shown that investors need to construct and evaluate their portfolios in a manner consistent with their expected holding periods.