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Alberscha
New Member

If I purchased an asset on July 23, 2020, and sold that asset on July 23, 2021, Is this a short term, or a long term capital gain?

 
4 Replies
MMTaxMM
Level 10

If I purchased an asset on July 23, 2020, and sold that asset on July 23, 2021, Is this a short term, or a long term capital gain?

Usual rule is exclude the first day and include the last BUT long term is MORE than one year.

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DoninGA
Level 15

If I purchased an asset on July 23, 2020, and sold that asset on July 23, 2021, Is this a short term, or a long term capital gain?

Generally, if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.

 

So if you only held the asset for exactly one year it would be short term gain.

 

IRS website - https://www.irs.gov/taxtopics/tc409

Mike9241
Level 15

If I purchased an asset on July 23, 2020, and sold that asset on July 23, 2021, Is this a short term, or a long term capital gain?

SHORT-TERM. The beginning of the holding period is generally the day after property is acquired and the number of months that the property is held is determined by the specific day of the month, regardless of how many days are in the month. For instance, if you acquire property on August 1, then your holding period begins on August 2, and the holding period is increased by one month on the 2nd day of each month. long-term nust b held more than 1 year.

Critter-3
Level 15

If I purchased an asset on July 23, 2020, and sold that asset on July 23, 2021, Is this a short term, or a long term capital gain?

As I was taught ... long term =  1 year + one day    and short term is one year or less. 

 

Buy on 1/1/2020  ...  sell on 1/1/2021 = short term  ...  sell on 1/2/2021 = long term

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