Land cannot be depreciated. So yes, an allocation needs to be made between land and the building, and the land allocation subtracted from the basis of the property for depreciation purposes.
Also, Section 1245 should be separated as well, as they have different depreciation rules than Section 1250 property.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
