I just had a thought. Here's the info from the exchange company on settlement costs - there are:
1)Exchange Expenses (ex: commisions, title charges, termite inspection)
2)Non Exchange Expenses
a)1040 Schedule E Adjustment
/Expense (ex: taxes, escrows for repairs, prepaids), and
b)Debt Relief (relinquished Property)or Loan costs (Replacement Property) (ex: appraisal fee, loan fees, Points [points being amatorized over the life of the loan]).
I'm wondering if there are two places I have to deal with this exchange; the first being the 8824 form which is perhaps a summary, and then the individual
Schedule E's where I actually record the items from #2 above. If that were the case, I'm not sure what I do with the #1 items. Does this make any sense?
I looked over your example, but it doesn't really deal with the Exchange Expenses.
Exchange expense relates to the costs to dispose of relinquished property and costs to acquire replacement property.