How to calculate stock holding period

1 answer

The stock holding period can be calculated by subtracting the purchase date from the sale date and adding one. The formula would be:

Stock holding period = (sale date - purchase date) + 1

For example, if you purchased a stock on January 1, 2020, and sold it on December 31, 2020, the stock holding period would be:

(December 31, 2020 - January 1, 2020) + 1 = 366 days

This value would then be used to calculate capital gains tax or other investment-related calculations.