Are sales of fractional shares in spinoffs always considered Long Term gains?

[DS30 · Accepted solution]

Not necessarily - You have a basis in the fractional shares and a gain or loss is based on the allocation of your parent stock basis between the spin off shares and your original shares (the basis on the fractional shares would normally be quite small). Your holding period for the sold fractional shares dates back to your original purchase of the parent's shares so it is probably long term.