real estate or real property, or any tract that may be conveyed by deed. Land is not subject to depreciation. Generally, the sale of land by anyone other than a dealer results in a capital gain or capital loss. However, if the land is improved by roads, utilities, or other features, it no longer qualifies for capital gains treatment.
Description and Definition of Land
Unimproved real estate, or improved real estate not including buildings and other improvements. The cost of the land is not depreciable.