How does inflation on rental affect depreciable basis

[donovonw]

My rental property increased in the assessed value, substantially, and I was wondering if I can use the new basis to determine a depreciation schedule

[Mike9241]

No. basis is what you paid when you bought it and what you paid for capital improvements afterwards. inflation does change the amount you paid historically. 

[PattiF]

The IRS Publication 527, Residential Rental Property does not mention changing the cost basis of a rental to reflect a changing property value. The initial basis is what is used for the life of the property without any modifications. Improvements will increase the basis.