holding period

Definition

The length of time an asset was held (the time between the trade date of the purchase and the trade date of the sale). The holding period determines whether a gain or loss is short-term or long-term for tax purposes. A long-term holding period is one year and one day. The short-term holding period is less than one year.

Use holding period in a sentence

You need to make sure that you have accurately assessed the holding period and are ready when it has ended.

​ Was this Helpful? YES  NO 8 people found this helpful.

The holding period was longer than normal to be sure, but in the end things still worked out in our favor so we had no qualms.

​ Was this Helpful? YES  NO 10 people found this helpful.

Since he didn't want to pay short term gains, he decided his holding period should be for at least a year, and then could sell it.

​ Was this Helpful? YES  NO 6 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
rule 144a qualified dividend