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in this video were gonna talk about how to calculate the holding period in the stock received by a transfer or in a section 351 transaction so if you remember with a section 351 transaction the transfer wars are gonna transfer property in exchange for a corporation stock now the question is what is the holding period in this stock received right so lets say you do a section 351 transaction and you receive stock and a corporation is this going to be long term or is it going to be short term if you were going to sell the stock lets say immediately or six months later or so forth so the question is whatever property you transfer to the corporation in exchange for that stock is the holding period of that property lets say you had held the property for three years is that going to be used to determine whether the stock if you were to sell it would generate a long term or short term capital gain I know its really confusing lets jump into an example itll make it a little bit easier to