Can depreciation deduction increase with property value?

[Josh Webb]

My properties have appreciated significantly over the last year and the city has reassessed these at significantly higher values which means a new larger tax bill. Am I able to increase my depreciation deduction based on the new values to offset this or am I stuck at the same rate that I started taking depreciation at? My initial depreciation is based off of the purchase price, so if I am able to increase it does the new value have to be based on anything in particular (tax assessment, appraisal, zillow estimate)? 

[Yonah Weiss]

Originally posted by @Josh Webb:

My properties have appreciated significantly over the last year and the city has reassessed these at significantly higher values which means a new larger tax bill. Am I able to increase my depreciation deduction based on the new values to offset this or am I stuck at the same rate that I started taking depreciation at? My initial depreciation is based off of the purchase price, so if I am able to increase it does the new value have to be based on anything in particular (tax assessment, appraisal, zillow estimate)? 

 Unfortunately depreciation is solely based on your purchase price. The IRS looks at how much money was spent. The only time your depreciation basis in a property will increase, is if you add more money into the property via capital improvements.