Reassessed Tax Value and Depreciation

[Chris T.]

My question is in regards to the effects on a reassessed tax value on my rental property and if/how that changes my yearly depreciation. The tax value on the house actually went down in a recent county reassessment (long story but it had been raised over 200% 2 years earlier and then appealed by the previous owner). Does depreciation go off of the most recent county assessed value? Say I keep the property for the full 27 1/2 years and I have claimed more/less than the full assessed value due to changes in the assessed values over the years. What happens with the difference?