time interval that property has been owned by the entity.
length of time an investment is owned or expected to be owned. The holding period is important in determining whether a gain or loss from the sale or exchange of a capital asset is long-term or short-term. For tax purposes, the holding period generally begins and ends on the settlement date of the purchase and sale transactions.
length of time an asset is held by its owner. Capital assets held for more than 12 months qualify for preferential capital gains tax treatment. Assets sold after being held for more than 12 months are subject to a maximum capital gains tax rate of 15%, while assets sold after being held for 12 months or less are taxed at regular income tax rates up to 35%.
the time span of ownership, often for investment real estate.
Example: Some investors prefer short holding periods (under 5 years) in an attempt to retain high levels of financial leverage. Others hold property longer to reduce frequent transaction costs and avoid depreciation recapture.
