[1031 exchange into TIC] Cost basis and Depreciation

[JJ O.]

First off, thanks to everyone for contributing.  I've learned just about everything I know about real estate on BiggerPockets.

My situation:  I'm trying to help my parents use a 1031 exchange to defer ~1.2M capital gains on the sale of a fully-depreciated rental property.  We are still in the research phase and considering all of the ideas presented in this forum.

Question: How would the adjusted cost basis/depreciation work with a 1031 exchange into a tenant-in-common (TIC) investment? Our share of the property would be ~$5M. The asset manager/potential partner told me to expect an annual K-1 form for filing taxes. If all you get is a K1, how would you report the adjusted cost basis on your taxes? How is the deferred capital gain liability captured?

Second Question: What would happen when one invests in a DST?

Thanks in advance!