DST converting to 721 UPReit Depreciation question

[Steve Schaeffer]

I participate in a DST acquired thru a 1031 Exchange. the DST wants to transition into a 721 Upreit. What happens to my carry forward depreciation. I have had several previous 1031 exchanges that still have a lot of depreciation. After Each Exchange I have carried forward the leftover depreciation to the next property. Can I continue to take depreciation on my carry forward if go into the UPREIT?

[Jon Taylor]

Your current cost basis should carry forward and continue on your REIT OP investment. Meaning, your depreciation schedule should continue.

Do you have an *option* or are you *forced* to participate in the REIT? Does the REIT pay its cash dividend out of operating cash flow (AFFO), or is it paying its dividend out of paid-in capital?