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URL:  http://boards.fool.com/in-doing-this-transaction-is-the-depreciated-15658203.aspx

Subject:  Re: 1031 like kind exch. Date:  8/29/2001  7:59 PM
Author:  WallyJr Number:  53674 of 123001

In doing this transaction is the depreciated value of the exchanged property transferred to the new property? Example: I sell for 200,000 a property that cost 100,000, it has been depreciated to 30,000 if I purchase a property for 100,000 it should be a tax deferred purchase with a basis of 30,000?

As noted before, I'm not a 1031 expert, but that's the way I read it. You have a $170,000 gain, $100,000 of which (the cash out)is recognized and $70,000 of which is deferred by reducing your basis in the replacement property, leaving you with a basis of $30,000.