QuickBooks Dictionary
Holding period
The holding period of property is the length of time that property has been held by a taxpayer or the length of time the taxpayer is treated for income tax purposes as having held it. The term is most important for income tax purposes as it relates to capital gains transactions. Whether a capital gain or loss is long- or short-term depends on whether the asset sold or exchanged has been held by the taxpayer for more than 12 months.