Thank you Critter,
I suppose you are right about not using an over inflated cost basis for depreciation, in the event we needed to sell the property we would be paying in more capital gains taxes. However, we plan to use our rentals as retirement income, so don't plan on selling them anytime in the foreseeable future. In this case we are hedging our bets that we won't encounter the aforementioned situation, but instead see the more immediate tax benefits on an annual basis.
