Land

AAA

DEFINITION of 'Land'

Property or real estate, not including buildings or equipment, that does not occur naturally. Depending on the title, land ownership may also give the holder the rights to all natural resources on the land. These may include water, plants, human and animal life, fossils, soil, minerals, electromagnetic features, geographical location, and geophysical occurrences.

INVESTOPEDIA EXPLAINS 'Land'

In the traditional school of economics, land is considered a factor of production, along with labor and capital.

Selling land results in a capital gain or loss. As opposed to almost any other asset, land is not a depreciable asset under IRS tax laws. Land ownership does not contain or include any permissions to develop the property, as opposed to a 'plot', which is a real property that is slated for development.

RELATED TERMS
  1. Emblements

    Annual crops cultivated by a tenant which are treated as the ...
  2. Reassessment

    The process of redetermining the value of a parcel of real estate ...
  3. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
  4. Landominium

    A type of residential property in which the owner owns both the ...
  5. Land Contract

    An agreement between a buyer and seller of property in which ...
  6. Factors Of Production

    An economic term to describe the inputs that are used in the ...
Related Articles
  1. An Introduction To Depreciation
    Active Trading

    An Introduction To Depreciation

  2. Mortgages: How Much Can You Afford?
    Budgeting

    Mortgages: How Much Can You Afford?

  3. How To Assess A Real Estate Investment ...
    Home & Auto

    How To Assess A Real Estate Investment ...

  4. Is it true that you can sell your home ...
    Investing

    Is it true that you can sell your home ...

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center