I’ve been reading through this thread, and it’s eye-opening how tricky this depreciation stuff gets when selling a rental property. I was hoping that if no depreciation was taken in the past, I could just enter "0" for prior years and keep it simple—less tax with just capital gains sounded nice. But from what everyone’s saying, it doesn’t work that way because of this "allowed or allowable" rule. That’s a bummer since it means recapture tax hits you even if you didn’t claim it before.

The Form 3115 idea with DCN 107 sounds like a decent fix—claiming all the missed depreciation in the sale year—but it looks complicated. I’m wondering if it’s worth the hassle if the tax ends up close to what I’d pay by skipping it and risking an audit. Those tax software experiments showing the numbers were super helpful, though—makes it clearer how big the difference can be. Has anyone here actually filed a 3115 for this and found it easy enough to do without a pro? I’m new to this forum and trying to wrap my head around it, so any real-world tips would be awesome!