Development vs Construction

[J Adams]

I am reading IRS Publication 925, "Passive Activity and At-Risk Rules". In Real property trades or businesses paragraph it lists development and construction as two separate trades. Scanning the forums, I do not see anybody touching this topic and I feel it would get a great response with all the potential in the forum space. 

Q: What is the difference between development and construction?

[Joshua Houchins]

I consider myself a developer.  I hire a general contractor to do the work for me.  Developers develop property by buying the property having designers and architects draw up the plans then hire a general contractor who performs the construction side of the work.  So developer is the top of the food chain then comes the gc.

They are in the same ball park but not the position.