holding periods

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assets must be held for more than 1 year for the gain or loss to be considered long-term. assets held for less than 1 year are considered short-term. short-term asset gains are treated as ordinary income for tax purposes.


read chapter 8 relating to holding periods.

read the following article “how to calculate a holding period” from the motley fool, http://www.fool.com/personal-finance/taxes/2005/04/22/how-to-calculate-a-holding-period.aspx and answer the following questions:
•what did you think about the article?
•did it help explain how holding periods are figured?
•why are holding periods so important?
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