Am I operating a real estate trade or business?

[CS326]

Beginning in 2021, my wife and I have purchased several vacant, waterfront parcels of land with the intent to improve and sell. All parcels have at a much lower market value than surrounding parcels because of there condition (erosion, overgrown, insufficient access from roadway, lack of reasonable building sites, etc.). 

All parcels require(d) significant earth moving and subdivision to make the best use of the land and to bring the value in line with surrounding properties.

I am experienced with heavy equipment, earthmoving, site work, and project management. Since 2022, We have been making those improvements ourselves - not contracting. The work is expensive, ongoing, active, and significant. However, because we do all of the work, it isn't a quick "flip". 

Am I running a trade or business, or am I an investor? 

Should I be classifying the parcels as inventory?

Thanks for any insights.

[Mike9241]

i would say that because you are improving the land you are in a trade or business. however, all those costs are not deductible until the property is sold.  Also as a trade or business, the land and the cost of improvements are inventory. Any gain or loss would be ordinary. You should seek professional guidance.