It's about capital-gains tax vs income tax. Because the rates are dramatically different and the case law is so convoluted, people who hold land as an investment don't touch it.
If they touch it in the wrong way, the sale of that land is taxed as regular income instead of capital-gains. In America, regular income tax is DOUBLE capital-gains tax.
http://www.forbes.com/sites/anthonynitti/2013/12/31/tax-geek...
It's about capital-gains tax vs income tax. Because the rates are dramatically different and the case law is so convoluted, people who hold land as an investment don't touch it.
If they touch it in the wrong way, the sale of that land is taxed as regular income instead of capital-gains. In America, regular income tax is DOUBLE capital-gains tax.