"This is what google AI has to say."

Seriously? Wow, nice link. If I had known my input would be used for AI, I would have sold my brain to Google.

"Using cost of sales and sales would look like they were a construction company that did this as their main line of business."

Are you confused between an operating loss and asset loss? Short Term gain or loss is treated as ordinary income, but that doesn't prove they are a construction firm. It's just the tax treatment. They were creating their own Capital/Fixed Asset, no differently than someone manufacturing their own production or tooling equipment.

CIP is an asset and the sale proceeds are offset by the costs. It really is that simple. Maybe a separate case can be made for the land.