Hello RaineB,
You can check with your county tax assessment, many times they will break out the difference between land and buildings. That ratio or percentage can be used against the original purchase price to determine the amount of all the land involved in the sale. If the two lots were equal in size, then you would allocate half the land value to the lot with the building and half the land value to the vacant lot.
For example:
If the tax records report of the $900,000 purchase price, $250,000 is for the land and both lots are the same size, then each lot is $125,000 as the cost. You sold the extra lot for $400,000 so the gain on the sale would be $275,000.
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