With so many distressed properties being purchased and sold through the 1031 exchange, this section will help you answer many of the questions that arise. Also, if your property is taken by eminent domain or through the threat of condemnation, you can exchange as well, but under a different section of the IRS code.
Deferring Gain on Condemned Property - 1033 Exchanges
Foreclosures and 1031 Exchanges
How the 1031 Exchange Works with Short Sales, Auctions and Foreclosures