GLOSSARY · TAX & ESTATE
Holding period
How long you owned an asset before selling it, which decides whether a gain is long-term or short-term. In the US an asset held more than one year is long-term, and inherited property that takes a stepped-up basis is treated as long-term even if sold within a year of the death. In India land or a building is long-term after more than 24 months, and an heir counts the previous owner's holding too.
Also called: long-term vs short-term, how long you held it, period of holding
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · TAXES ON BOTH SIDES · STRATEGIESIndian Property: Buying, Renting and SellingCHAPTER · TAXES ON BOTH SIDES · STRATEGIESInheritance and GiftsRELATED TERMS
SOURCES
- 26 U.S. Code § 1223: Holding period of property. Legal Information Institute, Cornell Law School.
- 26 U.S. Code § 1222: Other terms relating to capital gains and losses. Legal Information Institute, Cornell Law School.
- Income-tax Act, 2025, section 2(101) (formerly section 2(42A) of the 1961 Act; read 2 October 2026). Income Tax Department, Government of India.