Help Interpreting 1031 Rule Changes

[Kon Zel]

Just saw an article on Bloomberg alluding to changes with 1031 exchanges.  The gist I'm getting is that the cost basis for the new property will be stepped down to adjust for depreciation on the property that's being exchanged out.  ie: $1mm property that was depreciated down to $500k exchanged into $2mm property.  The basis for the new property will be $500k.  

Any attorneys/CPAs out there that care to comment?  

This is the publication from the IRS (a bit dense for my taste): https://www.irs.gov/pub/irs-drop/reg-107892-18.pdf