The improvements no doubt move below replacement cost - but it appears property buyers are prepared to pay a premium for those improvements at the time of sale/purchase. In the end it is the owner at the time of replacement that bears the cost of replacement - previous owners have had the depreciation.
Its probably about time for residential rental owners to look at rentals as a revenue opportunity rather than a tax vehicle. This is wheer I think cjages to teh tax system can be made - but it won't be easy and there will be fall out.
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