### Question
What does applicable percentage mean?


### Answer
**Applicable percentage** has the following meaning in *26 U.S.C. § 1250*:

> 100 percent minus 1 percentage point for each full month the property was held after the date on which the property was held for 20 full months

#### Citation:
  - *26 U.S.C. § 1250*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

