Please read the following article byNick Finkenauer, Land Sales: Is the Taxpayer Considered a Dealer or Investor?(Links to an external site)

There can often be difficulty in determining whether a gain or loss is capital. For instance, generally stock and land are capital assets in most taxpayer's hands, and therefore, receive a special capital gains rate. However, there are some instances in which these items are considered ordinary, as noted in the article. In many cases, this is because the item is inventory in the hands a real estate developer or stock trader. Do you agree with the current framework for determining whether an asset is capital? Or should congress should instead designated a specific list of assets that are always capital? Please explain.