I am in the process of selling some dirt (125K Worth) off a piece of land that has been in my family for some time. It is a one time deal that came around by accident. Is it earned income or can it be considered capital gains?

It's certainly not earned income. You aren't in the business of buying and selling dirt. It's personal property and a capital asset and therefore is a capital gain.

Publication 544 (2007), Sales and Other Dispositions of Assets (http://www.irs.gov/publications/p544/ch02.html)

I am in the process of selling some dirt (125K Worth) off of a piece of land that has been in my family for some time. It is a one time deal that came around by accident. Is it earned income or can it be considered capital gains?
It should be classified as capitalgain it is prsumed the buyer is entering into a capital tansaction and the buyer must respect there term