IRS calculates incorrect holding period for qualified dividends in Pub 550 example

[big toes]

The IRS seems to have an incorrect number of days calculated in one of the examples for the holding period of qualified dividends. In Publication 550, it says:

When counting the number of days you held the stock, include the day you disposed of the stock, but not the day you acquired it. See the examples below.

Example 1.

You bought 5,000 shares of XYZ Corp. common stock on July 5, 2024. However, you sold the 5,000 shares on August 8, 2024. You held your shares of XYZ Corp. for only 34 days of the 121-day period (from July 6, 2024, through August 8, 2024).

Example1  seems to be correct:

• July 6 - July 31 = 26 days
• August 1 - August 8 = 8 days
• 26 + 8 = 34 days

Example 2.

you bought the stock on July 11, 2024 (the day before the ex-dividend date), and you sold the stock on September 13, 2024. You held the stock for 63 days (from July 12, 2024, through September 13, 2024).

This seems to be incorrect:

• July 12 - July 31 = 20 days
• August 1 - August 31 = 31 days
• September 1 - September 13 = 13 days
• 20 + 31 + 13 = 64 days

How did the IRS calculate 63 days?

[MindyB]

The IRS computes the holding period by counting the days held without regard for the first day.

See How are dividends taxed?

[Edited 03/08/25 | 8:15 am PST] 

[big toes]

If July 11 was the purchase date, why would July 12 not count towards the holding period?

[MindyB]

You are correct. Unfortunately, we cannot edit IRS documents here, but you can reach out to the IRS.  

Here is how to contact them: Comment on tax forms and publications