Understanding Capital Gains and Losses...

Capital gains and losses must be separated according to how long the individual held or owned the property.

Short-Term

The holding period for short-term capital gains and losses is one year or less.

Long-Term

The holding period for long-term capital gains and losses is more than one year.

Inherited Property

Inherited property is considered held long term regardless of actual time held by the beneficiary.

Securities Traded on an Established Market

For securities traded on an established securities market, the holding period begins the day after the trade

date the securities are purchased and ends on the trade date the securities are sold.

 

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