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The following is a hypothetical from the Rental section of the program where a rental property is sold. Note that expenses of sale were not entered for the sake of simplicity. 

One thing to note about the Cost is that it represents the total purchase price, including the land. So, in this instance, the cost of the land was $250,000 and the cost of the structure was $250,000 (total of $500,000).

The property was then sold for a total of $1,000,000 where half ($500,000) was allocated to the structure and half ($500,000) was allocated to the land (in the same manner as the Cost where half was allocated to the land and half allocated to the structure).