The 'deferred gain' is reflected in the Cost Basis of the new asset in the Rental section. Most states follow the federal code, allowing you to defer your state taxes on exchanges.
If you had a 'realized gain' (Line 19 on Form 8824), it flows to Schedule D and Form 1040.
This would be reflected in the Adjusted Gross Income amount that most states start their calculations with.
Your state may generate a Form 8824 (California does) but the numbers are the same as the Federal 8824.
Click this link for more info on State 1031 Exchanges.
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