How to calculate stock holding period
The stock holding period can be calculated by subtracting the purchase date from the sale date and adding one. The formula would be:
Stock holding period = (sale date - purchase date) + 1
For example, if you purchased a stock on January 1, 2020, and sold it on December 31, 2020, the stock holding period would be:
(December 31, 2020 - January 1, 2020) + 1 = 366 days
This value would then be used to calculate capital gains tax or other investment-related calculations.
To calculate the stock holding period, follow these steps:
Step 1: Determine the Purchase Date
Note down the date when you purchased the stock.
Step 2: Determine the Sale Date
Note down the date when you sold the stock.
Step 3: Calculate the Holding Period
Subtract the purchase date from the sale date to determine the number of days you held the stock.
For example, if you purchased the stock on January 1, 2021, and sold it on June 30, 2021, the holding period would be 180 days.
It is important to note that the holding period can also be calculated in terms of months or years, depending on the specific requirements.