In other words, it's does not represent special tax treatment that an account has to qualify for.

And the interior needs at least window treatments and sometimes there are kinks that need to be worked out in year one.

So it does qualify for 1031 treatment, And when the DST is sold, you still have the ability to 1031 back into investment property(or into another DST) and continue to defer the tax indefinitely.

Many business owners are deeply concerned with the future treatment of their employees, equipment, image, customers, etc.  

@Jeremy Santy Great question, building and selling homes can be profitable, but the tax treatment depends heavily on your intent and structure, and it can be the difference between capital gains and ordinary income.

This means, faster evictions, Greater certainty when starting evictions, and equal treatment in housing court.

I have people in my organization who have experienced the same mis treatment.

Making an exception for someone, simply because you "feel like" they would make good renters, while NOT offering this reduced rate to others is Exactly what HUD watches for to ensure equal treatment with EVERY prospect.  

When the IRS treats you as a dealer, your properties are considered inventory instead of investments, which means you lose access to key benefits like 1031 exchanges, installment sales, long-term capital gains treatment, and depreciation.

The 121 exclusion allows you to exclude up to $250k in appreciation (or $500k for a married couple) from capital gains tax treatment.