Depreciation Basis for Condo Bought With Vacant Land 1031
We purchased vacant land in the 1970's for $70,000. Sold it in 2018 for $720,000 and 1031 exchanged for 3 condos now used as rentals.
Since the sold property was vacant and never depreciated - what is the cost basis and depreciation schedule for the new condos?
Should it be as in a new purchase i.e. dwelling deprecated over 27.5 years?
Or - some formula based on the vacant land purchase & sale prices?
What is entailed in "opting out" using IRS Form 4562? Would that come into play here?
My only understanding of that is from a memo I found on line written by Realty Exchange Corporation.
Many, MANY thanks