We discussed in class that in $1986$ the tax laws were changed such that all depreciation for real property would be required to be claimed as straight line depreciation. Prior to $1986,$ there were methods of accelerated depreciation that a taxpayer could elect to do to increase their depreciation deduction. This would create a unique tax situation when the real property was sold regarding depreciation recapture. Here are the two contrasting examples:

Example #$1$

In $1988,$ DK bought a rental property for $$108,500.$ Over the years, he only claimed straight$-$line depreciation. In $1998,$ his adjusted basis was $$78,500$ when he decided to sell the property for $$150,000.$ His recognized gain of $$71,500$ will be taxed at the following rates:

$$41,500$ Capital gain $(0\%$ or $15\%$ or $20\%)$

$$30,000$ Section $1250$ gain $($maximum $25\%)$

Example #$2$

In $1985,$ LS bought a rental property for $$108,500.$ Over the years, she claimed an accelerated depreciation method which lowered her basis more quickly. In $1995,$ her adjusted basis was $$70,000$ when she decided to sell the property for $$150,000.$ Her recognized gain of $$80,000$ will be taxed at the following rates:

$$41,500$ Capital gain $(0\%,15\%$ or $20\%)$

$$30,000$ Section $1250$ gain $($maximum $25\%)$

$$8,500$ Ordinary Gain $(10\%,12\%,22\%,24\%,32\%,35\%$ or $37\%)$

As you can see LS will have a larger tax to pay because of the larger depreciation recapture taxed as ordinary gain. Why is this issue less likely to be an issue in the future?