7633 / When does the holding period begin if Treasury notes and bonds are bought at auction or on a subscription basis?

The holding period of United States Treasury notes and bonds sold at auction on the basis of yield generally starts the day after the Secretary of the Treasury, through news releases, gives notification of the acceptance of successful competitive and noncompetitive bids. The holding period of Treasury bonds and notes sold through an offering on a subscription basis at an established yield generally starts the day after the subscription is submitted.¹ (Under some circumstances, a holding period may be tolled or be deemed to have begun at a later date. See, for example, the rules for tax straddles ( Q 7593 to Q 7614).)

The donee of a bond can include in his holding period the time the bond was held by the donor.²

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1.   Rev. Rul. 78-5, 1978-1 CB 263.

2.   IRC § 1223(2).

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