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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.
Determining tax basis [edit]. The basis of property is generally the property's cost: the amount paid for the property in cash or other property. Holding period refers to the duration of time owned based on the purchase date. Where an asset is purchased, tax basis generally includes cash paid plus liabilities assumed.djusted tax basis is used in determining gain or loss from disposition of the asset. Tax basis may be relevant in other tax computations. Tax basis of a member's interest in a partnership and other flow-through entity is generally increased by the members share of income and reduced by the share of loss.