Sean Willens owns various plots of land in Duval County, FL. He acquired the land at various times during the last 20 years. About every third year, Sean subdivides one of the properties he owns into lots. He then has sewer, water, natural gas, and electricity hookups put in each lot and paves new streets. Sean has always treated his sales of such lots as sales of capital assets. His previous tax returns were prepared by an accountant whose practice you recently purchased. Has the proper tax treatment been used on the prior tax returns? Explain.

Your memorandum should include the Facts, tax issue conclusion and analysis.

You will find guidance from the regulations under Section 1221 and 1237. (Youll find relevant provisions for the facts of this case in 1237(a)(2) and Reg 1.1237-1(c)(3)(ii)).