Holding Period

Generally, the length of time an asset is owned will determine if it qualifies for long-term capital gains rates when it is sold. To qualify for long-term capital gains rates, an asset must be owned more than 12 months or be inherited property. The holding period of an asset usually begins the day after an asset is acquired and ends on the date of sale or other disposition. For stock, the trade dates, not the settlement dates, are the acquisition and disposition dates to use.

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