Tax treatment for sale of raw land

[David Held]

I purchased raw land last year with the intention of constructing several rental units on it.  At that time, the construction prices made this a very viable strategy.  With current construction prices, material shortages and the general lack of availability of builders in our local area, I am now considering selling the land which has also appreciated significantly in value.  The time of ownership would be greater than one year at the time of any sale.  The question is whether the gain from this sale would be considered passive income which could be offset by passive losses on other investments or is this considered portfolio income which cannot be offset by passive losses?

[Jay Hinrichs]

I think its capital gains.. either short term  less than a year or long term.

I do think you could 1031 though.. 

but again not certain but thats how I have treated my land sales that were not inventory.