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 ?
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.
Welton's latest whitepaper explores one of the most mathematically reliable, yet least isolated sources of portfolio diversification, investment holding period.
Our findings suggest that the long-run causality flow from NASDAQ index to margin borrowing which is positive and that to the holding period is negative.
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.
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.
The employee's holding period for the shares acquired in the exchange includes that which the employee had in the shares transferred to the employer.
holding periods are examined by calculating daily, weekly, monthly, quarterly, semiannual, and annual rates of returns.
Still, the difference between the cost across the different holding periods was not significant.
The study cites investors' propensity for chasing performance as a main reason for losing performance, as measured by rising mutual fund redemption rates and shortened holding periods.
The classification of holding periods as either qualified or nonqualified is critical.
172(b)(2) and (3) governing holding periods of interests acquired, transferred or previously held by a financial holding company apply to interests in, held through, or acquired from a private equity fund.
Government Securities Fund (BBUSX) is rated "AAA/V-3" under the new system, indicating that the fund has moderate market risk and will exhibit some variability of total returns over short to intermediate holding periods.