### Question
Can you define what holding period percentage means?


### Answer
**Holding period percentage** is defined as the following in *26 U.S.C. § 143*:

> the percentage determined in accordance with the following table:




 |  | **If the disposition occurs during a year after the testing date which is:** | **The holding period percentage is:** |
|  | The 1st such year  | 20 |
|  | The 2d such year  | 40 |
|  | The 3d such year  | 60 |
|  | The 4th such year  | 80 |
|  | The 5th such year  | 100 |
|  | The 6th such year  | 80 |
|  | The 7th such year  | 60 |
|  | The 8th such year  | 40 |
|  | The 9th such year  | 20

#### Citation:
  - *26 U.S.C. § 143*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS > Subpart A-Private Activity Bonds**

