It is not necessary to report the deferred gain. That amount is built into the basis. If the property sold today for $2,000,000 the gain would be $2,000,000 - 898,848 = 1,101,152. Depending on the election made there will be some depreciation recapture. but the deferred gain is NOT part of the determination of gain in the future. 

If you are a CA preparer, then form 3840 must be filed with EVERY RETURN IN THE FUTURE until the asset is sold. If that is the case, the deferred gain is shown, BUT SO WHAT? The basis is the key number.