ANY ANSWERS ANSWERED: When does buying and selling houses become a trade?

In tax terms this question is not dissimilar to asking: "How long is a piece of string?" There should be a straightforward answer; look at the facts and then weigh up motives and the 'Badges of Trade'. However, in practice, the actual tax treatment desired may overshadow reality. Why treat something as a trade, when there is a far more favourable tax treatment by treating it as a capital transaction?

Keith asked the question in Any Answers: "When does buying and selling houses become a trade?

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