The capital property is any type of asset employed for personal or investment purposes. An example of capital property is investment in bonds or stocks.
The duration of time held doesn't affect the quantity of profit or loss except it affects the tax rate applied on the profit. Only the long term capital profits get special tax treatment.
So, it is clear that the time length held
IRC §1231 property is depreciable and nondepreciable property (including real property) used in a trade or business and held for more than 1 year. Timber, coal, domestic iron ore and certain livestock held for breeding, dairy, or sporting purposes are also considered §1231 property. The most typical examples of §1231 assets are machinery and equipment, buildings, and land used in a business. When a §1231 asset is sold, the gain may be either ordinary or capital. These gains (and/or losses) on the sale are initially reported on Form 4797.
Every type of asset can be categorized into three classes which are ordinary income asset, capital asset, and business asset. Classification of assets can help in determining the rates of tax return on profits.
Land possessed for an investment is considered as capital asset. But, in case the land is used for the purpose of business or trade, it is considered as business or
trade property. In case the land is kept for resale by real estate agent, it is considered as ordinary income asset.
Hence, land is considered as a different property