A farm that my father gave to me while he was alive in 1984 and that I have been renting out was sold to the county/school board in 2021 under threat of Eminent Domain for $5M. That was a reduction of $3M in asking price and they agreed to consider that reduction of price as a charitable donation to the school in the sales contract. I received a 1099-S for the $5M from the closing attorney. The farm was originally bought for $11,600 in 1952 and was worth about $75k in 1990. I have bought 2 replacement rental properties totaling $600k and intend to replace the entire amount ($5M) within the 2 years allowed under a 1033. Which exact forms do I fill out to identify the $5M as being deferred and not to count towards my AGI? Just the form pictured below? What about reporting the 1099-S? Do I also need to fill out form 4797 or Schedule D now? How do I report the purchase of the new properties that offset this gain in future years? Do I report the 2 properties now and the rest later or wait to report all replacement properties at once? What form for that? How do I insure that the $3M donation is utilized and the excess carried over to apply to futures returns? I am on TT Home & Business desktop version.
