No. The two are reported separately on the 4797 and are not combined together. The reason the building basis is adjusted is because depreciation recapture is taken into consideration to lower (adjust) your basis for the building. Land has no depreciation considerations as it does not depreciate for tax purposes. The only basis adjustments that may be considered for land are land improvements that were made while you owned the property. Both these components are listed separately in part 11 Box 10 of the 4797.
I am confused by your second question. Were the land and building sale not reported to New Jersey?
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