1031 Exchange Relief for Property Owners and Landlords From IRS
Property owners and landlords who could not complete their 1031 exchange due to qualified intermediary’s bankruptcy have been provided relief by IRS. Their exchange is considered completed and Rental Property Owners, Landlords caught in this situation may use a special safe harbor method to report gain or loss.
1031 Exchange News
Revenue Procedure 2010-14 provides a safe harbor method of reporting gain or loss for certain taxpayers who initiate deferred like-kind exchanges under § 1031 of the Internal Revenue Code but fail to 
If a taxpayer meets the requirements of the revenue procedure, the Internal Revenue Service will not treat the taxpayer as being in actual or constructive receipt of exchange proceeds if the taxpayer does not complete an exchange because of a default of a QI that becomes subject to a bankruptcy or receivership proceeding. A taxpayer reports gain under the revenue procedure on the disposition of relinquished property as the taxpayer receives payments.
The detailed information of 1031 Exchange relief can by seen here.1031 Exchange Revenue Procedure 2010-14
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