This revenue procedure provides a
method of reporting gain or loss for certain taxpayers who initiate deferred exchanges under § 1031 of the but fail to complete the exchange because a (QI) defaults on its obligation to acquire and transfer to the .This revenue procedure provides a safe harborsafe harbor method of reporting gain or loss for certain taxpayers who initiate deferred like-kindlike-kind exchanges under § 1031 of the Internal Revenue CodeInternal Revenue Code but fail to complete the exchange because a qualified intermediaryqualified intermediary (QI) defaults on its obligation to acquire and transfer replacement propertyreplacement property to the taxpayertaxpayer .