1033 Exchange (not 1031)

[Shefali Rai]

Hi - looking for inputs from 1033 exchange experts: 

1. Our investment property was severely damaged in a fire 

2. We have received insurance proceeds and are also planning to sell the fire damaged property at a deep discount 

Can we use 1033 exchange tax deferral for the proceeds from the Insurance and sale of fire damaged property? 

Thanks so much!