1031 exchange failed in next year

Dear 1031x: On your web site, there's a reference to failed exchanges still  having some deferral value.  I can't find any reference to this in the  regulations. 

 

Dear E:  The rule is as follows: If a 1031x is begun in one tax year, and is open and available for completion at the turn of the tax year, and then fails in the next tax year, the gain can be reported in that subsequent year, instead, as is usual, in the tax year in which the exchange began.  I can cite specific authority to that effect to you if needed.  May we help with your next 1031x? S.