H
 

head of household
An income tax filing status more advantageous than filing as a single person. It can be used by those who are single or legally separated and who maintain a household that is the principal living place for at least one dependent.


hedge
A buy or sell agreement for a future date that protects the holder against price fluctuations.


heir
A person who receives property from the estate of a deceased person.


holding company
A company that owns stock in and manages the activities of other companies. To gain tax advantages, the holding company must own 80% of the voting stock of the other company.
See also personal holding company.


holding period
For income tax purposes, this is the period of time you are considered to have held an asset, usually from the date of purchase to the date of sale. In the case of property received as a gift, your holding period includes the holding period of the donor as well. Your holding period is used to determine whether you receive short-term, or the more favorable long-term, tax treatment when you sell an asset.


home equity loan
Credit made available by lenders to homeowners whose property is worth more than their current debt against it. For example, a home with a fair market value of $200,000 may have a mortgage against it for $120,000. Mortgage lenders in most states will be willing to make a second loan based on the $80,000 of equity. The amount of the loan will depend on good lending practices, regulations, and the homeowner's ability to repay the loan.
 

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