I've spoken to an acquaintance who's CPA but he's not familiar with 721 transactions so he asked an associate who is for me. There does not appear to be a specific tax form to report the 721 transaction. Rightly or wrongly, for my tax return I simply provided a statement regarding the 721 transaction. I stated that the 721 transaction is not a sale and therefore non-taxable, that the DST will no longer be reported on my schedule E and that a K-1 will be reported instead. I mailed in my return this year but don't think they've processed it as of yet due to their huge backlog of unprocessed main-in returns (since the pandemic).
