Topic No. 409, Capital gains and losses
IRS · checked 2026-10-04
The app uses the figures and rules named on that page. It does not replace the page.
learning · official figure · reviewed 2026-10-04
Count Whether a Holding Period Is Long-Term
A capital asset is long-term only if you held it for more than one year. The count starts the day after you acquired it.
What this guide helps you do
Apply the IRS day-after holding-period count.
The figure that changes the result
A sale on the one-year anniversary is not more than one year. The next day is.
Counting 365 days from the purchase date is the common error. The IRS count starts the next day and includes the sale day.
Who this is for
A person who sold an investment and needs the general long-term or short-term label.
Steps
Step 1
Use the acquisition date, not the trade settlement date, unless your records say otherwise. Confirm the date the tax form uses.
Step 2
Find the same month and day one year later.
Step 3
A sale on that anniversary is not long-term.
Step 4
A sale on the next day is long-term.
Step 5
Stop if the asset was a gift or an inheritance. Those dates can differ.
Worked example
An asset acquired on January 15, 2024, has an anniversary of January 15, 2025. A sale on January 15, 2025, is not more than one year. A sale on January 16, 2025, is long-term.
The holding period is long-term.
- Acquired: 2024-01-15.
- Sold: 2025-01-16.
- Anniversary: 2025-01-15.
- Long-term: yes.
IRS Topic No. 409 says to start counting on the day after acquisition and to include the sale day. More than one year is long-term.
Where this goes wrong
Do not use this count for property acquired from a decedent, or for some partnership interests. The IRS page points those cases to other publications. A personal-use loss is not deductible even if the holding period is long.
What the source says
Limits
The tool uses the general rule on Topic No. 409.
A February 29 acquisition uses the last day of February in a non-leap anniversary year.
It does not compute the tax.
This tool gives general information. It is not financial or tax advice. Confirm the numbers with the provider or a licensed adviser before you act.
Use the current instruction from the agency named above. This guide is a planning aid, not an official decision.
Free companion app
Apply the IRS day-after holding-period count.
Open Count the Day-After Holding Period
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