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Did the 5-year holding period for Section 121 start when the trust acquired the property....?"
Pursuant to Reg. §1.121-1(c)(3)(i), the only way the holding period would have began when the trust acquired the property would be if the trust were a grantor trust and that does not appear to be the case here.
Consequently, the holding period would start when the property was transferred out of the trust to him, individually.
