A taxpayer who acquires vacant land for one use and, at a later date, starts to use it to generate income, will have s. 45(1)(a)(i) apply at the time of the change in use.
An election may be made under s. 45(2) in respect of capital property which does not constitute depreciable property to which s. 13(7)(b) otherwise would apply.
It is a question of fact whether vacant land which produces no income constitutes capital property, or property that is held in an adventure or concern in the nature of trade.
