https://www.taxtmi.com/forum/issue?id=1251 Tax treatment of sale proceeds from land depends on whether the land is a capital asset or a revenue asset. The inquiry is factual, focusing on intention at acquisition and subsequent conduct; inactivity alone does not determine character. If capital asset, proceeds are subject to capital gains; if held as inventory, proceeds are taxable as business income. The taxpayer claiming revenue characterization must provide evidence proving the purpose to deal in or develop the land as part of business operations. en-us Sat, 06 Jun 2009 12:07:42 +0530 Thu, 23 Jan 2025 15:58:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1251 Tax treatment of sale proceeds from land depends on whether the land is a capital asset or a revenue asset. The inquiry is factual, focusing on intention at acquisition and subsequent conduct; inactivity alone does not determine character. If capital asset, proceeds are subject to capital gains; if held as inventory, proceeds are taxable as business income. The taxpayer claiming revenue characterization must provide evidence proving the purpose to deal in or develop the land as part of business operations. Discussion-Forum Income Tax Sat, 06 Jun 2009 12:07:42 +0530 https://www.taxtmi.com/forum/issue?id=1251