holding period

Definition of "holding period"
  1. It refers to the duration for which a taxpayer retains an asset, which is used to classify any profit earned or loss experienced from it as either long-term or short-term
How to use "holding period" in a sentence
  1. During tax return season, it is essential to calculate the holding period for each invested asset.
  2. The holding period for the house was five years before the owner decided to sell it.
  3. Capital gains tax varies depending on the holding period of the investment.

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