Holding period
For purposes of determining the applicable percentage under this section, the provisions of section 1223 shall not apply, and the holding period of section 1250 property shall be determined under the following rules:
(1) Beginning of holding period
(1)Beginning of holding period#
The holding period of section 1250 property shall be deemed to begin—
(A) in the case of property acquired by the taxpayer, on the day after the date of acquisition, or
(B) in the case of property constructed, reconstructed, or erected by the taxpayer, on the first day of the month during which the property is placed in service.
(1)(A)#
in the case of property acquired by the taxpayer, on the day after the date of acquisition, or
(1)(B)#
in the case of property constructed, reconstructed, or erected by the taxpayer, on the first day of the month during which the property is placed in service.
(2)Property with transferred basis#
If the basis of property acquired in a transaction described in paragraph (1), (2), or (3) of subsection (d) is determined by reference to its basis in the hands of the transferor, then the holding period of the property in the hands of the transferee shall include the holding period of the property in the hands of the transferor.