1. I can't find tax law for 2008 for the 1031. Common sense leads me to think the expenses related to selling the property were added to the basis of the property sold while purchasing expenses were added to the basis of the new property. The fees to the exchange agent should go into the basis of the new property. You alone have the paperwork from the purchases and exchange.
2. No, you would not add it now. It has to have been used in the past. You do not carry over expenses like that. If the new property had a basis in 2004 of $268,935 and was depreciated and then had a higher value 4 years later - this requires improvements to have been made to offset the depreciation and still have an increase in basis. You clearly spent additional funds between 2004 and 2008.
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