My wife and I owned a rental property (property 1), in order to get out of property management we did a 1031 into a single DST with four warehouse properties in different locations. The four warehouse properties will be subject to another exchange in a couple of years (but that's another story). Because it was a 1031 my understanding is that the DST is added as a property so it shows up on schedule E, the purchase price and purchase date are from when I originally purchased property 1. This will make the depreciation follow the schedule of property 1, it will have nothing to do with the properties we exchanged into. Reading through the forum it seems like some folks have complex situations involving depreciations and DSTs, I am guess that if my understanding is correct about how I should handle the exchange the additional complexity for the other people might come from them not getting the DST through an exchange