The Capital gain will be on Schedule D and 1040 line 7.
Depreciation Recapture will be on Form 4797 and Schedule 1 line 4.
Land does not depreciate, so any sale proceeds over the basis is Capital Gain.
The "Adjusted Basis" for the building is the Basis less depreciation. The remaining gain (after accounting for the land) on the sale is first applied to the depreciation recapture, then if there is an gain remaining, it is capital gains.
Depreciation is considered Ordinary Income
Capital gain is taxed at Capital gain rates
Both should be considered as income to the state where the rental was located.
If the losses were generated by the rental, no adjustment would be made.
If the losses are from something else, the capital gain claimed for the state would be amount before the loss was applied. ,
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