Basically, what you have to do is reduce your cost-basis in the land by the amount of depreciation deferred, when you sell that land. So if your cost basis in the rental was $100,000 and you had $30,000 of unrecaptured depreciation, that makes your cost basis in the land $70,000. If devising the land into 9 equal parcels, $70K divided by 9 means your cost basis on each parcel is $7777.78. Since the IRS rounds to the nearest dollar, your cost basis for each parcel would be $7778.
Now I'm not all that familiar with 1030 exchanges. But for what *extremely* little I know and *somewhat* understand about the process (I think), that cost basis reduction should have been done at the time of the exchange. I don't know if it was required to be done, or if it was an option to let the person you exchanged with, keep that deprecation. But since 1031 exchanges are required to be handled by a disinterested 3rd party, that 3rd party would be much more knowledgeable on this than I am, by far.
