What would happen if an investor, did not take depreciation deductions for their property and after they sold the property they claimed a $0 depreciation recapture liability on their tax return?

Group of answer choices

Nothing. The IRS does not have any clear rules on this specific issue.

The IRS will sue you for tax evasion

None of these are correct

The IRS would compute the depreciation that could have been taken and then compute the depreciation recapture tax based on the amount you could have taken

This makes sense, as it avoids a costly tax