Happy day...Form 8824 is your friend.  I strongly recommend that you keep copies of the ALTA/Hud-1 and whatever other workpapers you use under lock and key, scanned in triplicate and tattooed on your thighs.  It will come back at you in the most amazing ways.  Be sure to know if the state has a clawback provision, too. 

I'm dealing with one now for a LKE of a property bought in NJ in 1962 and swapped into an MA property in 2007.  Thank goodness we kept amazing records detailing the swap, because this has become a contentious thing and its great to be able to show the client, who is now in his late 70s, his own handwriting on the docs.