What is holding period?

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:

What is the holding period of a partnership interest?

The actual holding period is, however, up to 9 years since the purchase year is not counted and the notice period is 12 months. If it was an ordinary asset in his hands, the holding period of the partnership interest begins the day after the contribution. This is also called the holding period return.

How is holding period return calculated?

Holding period return is calculated on the basis of total returns from the asset or portfolio (income plus changes in value). It is particularly useful for comparing returns between investments held for different periods of time.

What is a 21-day holding period?

• 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.