S corporations are similar to C corporations but have pass through tax treatment.

I'm usually looking for things like smoking and drugs.

We bought a 4plex (also our first) in UT that turned out to not be the "up and coming" neighborhood we thought, and soon after moving in learned that it was the town drug house and brothel! 

One could argue that both are assets, but the treatment of both is much different.I wonder why land is treated different?

Move into one unit and arm the property with security to keep out drug dealers, homeless, teens looking for a place to party, and gangs.

When tenants complain, appreciate it and listen very carefully to what they say-- multiple tenants complaining about excess traffic means you have a drug dealer and you'll need to get them out asap before you have a shooting in your building.

@Lori Sullivan the IRS doesn't have a time limit restriction on getting STR ready to place in service, but if you live in the property (or anyone else lives in the property during this time) it can have an impact on tax treatment. 

Lots of drugs and undesirable people.

And as Clayton mentioned property that is eligible for 1031 treatment is property you purchased with the intent of holding for productive use.  

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