Are they an approved GSA provider for the federal government?  

The proceeds from the properties you do not 1031 comes to you and the gain is taxable. 

I actually happen to agree with these particular federal rules.

Further, we don't know how the OP is organized for federal income tax purposes.Thus, the conclusion that the lender has a 1098 obligation is premature. 

Source: Graph by USAFacts & Data by Federal Reserve Survey of Consumer FinancesMy 2 cents to create Generational Wealth through Real Estate. 1) Be obsessed over Generational Wealth.

It will reduce your profit on paper- making your taxable income lower. 

So when people invest in these deals, they generally have to think about how to exit before you start getting whacked with taxable income. 

I don't know CA exchange rules/laws so I'm just speaking about Federal taxes.  

This return % does not include other benefits such as interest deductions from my taxable salary, appreciation of the underlying asset or the fact that each month I own a little more of the property since my mortgage is amortizing.

With the efficiency of title companies in delivering secure electronic information, the location of your QI really isn't an issue.  1031 as federal statute is performed the same nationwide.