1031 exchange what happens to the depreciation?

[Carol Kotchek]

Hello All,

I'm executing a 1031 exchange in September. I am realizing  $300,000 from the sale ($100,000 profit). I'm planning on purchasing new property for around $270,000. That will leave me with $30,000 in "boot" which I'm assuming I will pay capital gains tax on. 

I have taken $40,000 in depreciation on the property I'm selling. Does anyone know what happens to that depreciation after I sell? Does it get folded into the cost basis of the new property? Do I have to pay taxes on any "depreciation recapture"? 

I've talked to a couple of CPA's about this and I'm getting conflicting answers. 

Thanks for your help.

Carol