1031 Cost Basis question

[Bernard Golden]

Executed a 1031 exchange last year. In looking at draft income tax return, I queried cost basis for acquired properties. Accountant said that 1031 carries cost basis of relinquished property to acquired property/properties. So even if acquired property/properties are more expensive than relinquished property, cost basis is not adjusted upward. 

This seems odd to me, so thought I would query this forum to see if his explanation aligns with 1031 legal requirements.

Appreciate any feedback.

Many thanks.