I paid $115000 for House 1 and sold 16 years later for $390000. I bought House 2 using 1031 exchange for $452000, $30000 land and $422000 for dwelling. Cash paid was $452000 less $390000, or $62000.
Is the cost basis for depreciation:
A. $62000
B. $452000
C. $115000 + $62000????
Richard
