For real estate, treat it as 100% business property (non-real-estate is treated differently). The program makes it confusing when it says that.
The only possible 'catch' is if the Fair Market Value in 2013 (when it was converted to a rental) was LESS than your Cost. The housing market crashed in 2008-ish, so that could be the case. If that was the case, were you depreciating the Cost or the FMV?
Yes, that is a logical way to determine the price of land vs building.
