Depreciation calculation based on purchase price or recent appraisal price?

[Raj Shah]

New investor- I am renting my first property (my first home). My accountant - who is not real estate specific per say- sent me my schedule E forms with real estate tax calculation. The purchase price of the home I am renting was 885,000. It was appraised last year at 1,200,000.

Is depreciation calculated based on the purchase price? I was hoping it would be based on the recently appraised price?

Thanks for fielding this question.

Raj