Video: Holding Period of Purchased Property

In this lesson, Nick Palazzolo, CPA, unpacks the intricacies of the holding period for purchased property. With a focus on the significance of the start date of the holding period versus the place-in-service date, Nick clarifies how these dates differ and influence various tax implications. Illustrating with examples, he elucidates why understanding the distinction between these two dates is crucial for tax purposes, especially when it comes to the classification of capital gains or losses as short-term or long-term. Additionally, he delves into the relevance of the place-in-service date for tangible assets, highlighting how it dictates the commencement of depreciation, a key factor in managing taxable income. Keep an eye on these concepts, as they play a pivotal role in tax planning and financial decision-making related to asset management.