Is There a Minimum Holding Period for a Derivative to Qualify as Long-Term?
Yes, for non-Section 1256 derivatives (standard capital assets), the holding period must be more than one year (i.e. one year and one day) to qualify for long-term capital gains tax treatment. If the derivative is a Section 1256 contract, the holding period is irrelevant due to the mandatory 60/40 rule.
