Glad you found the issue. Actually, it's not a bug per-se. In a majority of cases, you *have* to allocate a value to the land. Otherwise, you're telling the program you had no land. So if you sell something without an acquisition date/value the program can only work with the date provided, which would be the date of sale making it a short term gain. This will happen if you leave the "cost of land" box blank. But it doesn't happen if you put a zero in that box. I tested this on an 1120-S return, and am assuming it would be the same issue with a 1041.
