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TITLE 26-INTERNAL REVENUE CODE § 1223. Holding period of property For purposes of this subtitle- (1) In determining the period for which the taxpayer has held property received in an ex- change, there shall be included the period for which he held the property exchanged if, under this chapter, the property has, for the purpose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as the property ex- changed, and, in the case of such exchanges after.March 1, 1954, the property exchanged at the time of such exchange was a capital asset as defined in section 1221 or property described in section 1231. For purposes of this paragraph- (A) an involuntary conversion described in section 1033 shall be considered an ex- change of the property converted for the property acquired, and (B) a distribution to which section 355 (or so much of section 356 as relates to section 355) applies shall be treated as an ex- change. (2) In determining the period for which the taxpayer has held property however acquired there shall be included the period for which such property was held by any other person, if under this chapter such property has, for the purpose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as it would have in the hands of such other person. (3) In determining the period for which the taxpayer has held stock or securities received upon a distribution where no gain was recog- nized to the distributee under section 1081(c) (or under section 112(g) of the Revenue Act of 1928, 45 Stat. 818, or the Revenue Act of 1932, 48 Stat. 705), there shall be included the period for which he held the stock or securi- ties in the distributing corporation before the receipt of the stock or securities on such dis- tribution. (4) In determining the period for which the taxpayer has held stock or securities the ac- quisition of which (or the contract or option to acquire which) resulted in the nondeducti- bility (under section 1091 relating to wash sales) of the loss from the sale or other dispo- sition of substantially identical stock or secu- rities, there shall be included the period for which he held the stock or securities the loss from the sale or other disposition of which was not deductible. (5) In determining the period for which the taxpayer has held stock or rights to acquire stock received on a distribution, if the basis of such stock or rights Is determined under sec- tion 307 (or under so much of section 1052(c) as refers to section 113(a)(23) of the Internal Revenue Code of 1939), there shall (under regulations prescribed by the Secretary) be included the period for which he held the stock in the distributing corporation before the receipt of such stock or rights upon such distribution. (6) In determining the period for which the taxpayer has held stock or securities acquired from a corporation by the exercise of rights to acquire such stock or securities, there shall be included only the period beginning with the date on which the right to acquire was ex- ercised. (7) In determining the period for which the taxpayer has held a residence, the acquisition of which resulted under section 1034 in the nonrecognition of any part of the gain real- ized on the sale or exchange of another resi- dence, there shall be included the period for which such other residence had been held as of the date of such sale or exchange. For pur- poses of this paragraph, the term "sale or ex- change" includes an involuntary conversion occurring after December 31, 1950, and before January 1, 1954. (8) In determining the period for which the taxpayer has held a commodity acquired in satisfaction of a commodity futures contract there shall be included the period for which he held the commodity futures contract if such commodity futures contract was a cap- ital asset in his hands. (9) Any reference in this section to a provi- sion of this title shall, where applicable, be deemed a reference to the corresponding pro- vision of the Internal Revenue Code of 1939, or prior internal revenue laws. (10) In determining the period for which the taxpayer has held trust certificates of a trust to which subsection (d) of section 1246 applies, or the period for which the taxpayer has held stock in a corporation to which sub- section (d) of section 1246 applies, there shall be Included the period for which the trust or corporation (as the case may be) held the stock of foreign investment companies. (11) In the case of a person acquiring prop- erty from a decedent or to whom property passed from a decedent (within the meaning of section 1014(b)), if- (A) the basis of such property in the hands of such person is determined under section 1014, and (B) such property is sold or otherwise dis- posed of by such person within 9 months after the decedent's death, then such person shall be considered to have held such property for more than 9 months. (12) Cross reference For special holding period provision relating to certain partnership dimtributions, see section 735(b). (Aug. 16, 1954, ch. 736, 68A Stat. 323; Oct. 16, 1962, Pub. L. 87-834, § 14(b)(3), 76 Stat. 1041; Dec. 31, 1970, Pub. L. 91-614, title I, § 101(g), 84 Stat. 1838; Oct. 4, 1976, Pub. L. 94-455, title XIV, § 1402(b)(1)(Q), title XIX, § 1906(b) (13)(A), 90 Stat. 1732, 1834.) TAXABLE YEARs ArTER 1977 Par. (11) of this section amended by Pub. L. 94-455, title XIV, § 1402(b)(2), Oct. 4, 1976, 90 Stat. 1732, effective with respect to taxable years beginning after Dec. 31, 1977, by substituting "I year"for "9 months'" REFERENCES IN TEXT The Revenue Act of 1928, referred to in par. (3), Is act May 29, 1928, ch. 852, 45 Stat. 791. Section 112(g) of such act appears on page 818. The Revenue Act of 1932, referred to in par. (3), probably means the Revenue Act of 1934, which is act Page 681 § 1223