It’s not nearly as large a dodge as presented. Ideally the economic (tax) life would be similar to the practical life, but “depreciation allowed or allowable reduces your basis” in the asset, so when you sell it, you will have a gain on the sale if it’s for more than your basis. You will be taxed on a portion of that which is depreciation recapture at a higher rate than the capital gains rate and at the capital gain rate for any gains above the basis plus depreciation recapture.

So, the new operator gets to start depreciating from their basis (which is fair and right), but the old operator has a gain to have taxed (or delayed by a 1031 exchange). It’s a cash flow difference in taxes as well (making it fair to include in the article), but not a permanent avoidance of taxation.