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Holding Period. Share. What is a 'Holding Period'. A holding period is the real or expected period of time during which an investment is attributable to a particular investor. In a long position, the holding period refers to the time between an asset's purchase and its sale.
How to determine your basis and holding period for inherited stock. You need to know the basis and holding period of any stock you inherit so you can report the correct amount, and correct category, of gain or loss when you sell the shares. The rules described here apply when the inherited stock was owned by an individual. Different rules may apply if the stock was held in a trust or a family limited partnership.