Assets must be held for more than 1 year for the gain or loss to be considered long-term. Assets held for less than 1 year are considered short-term. Short-term asset gains are treated as ordinary income for tax purposes.

Instructions

Read Chapter 8 relating to holding periods.

Read the following article How to Calculate a Holding Period (from the Motley Fool), and answer the following questions:

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Why are holding periods so important?