You must determine your adjusted basis.
Your adjusted basis is the price you paid plus improvements less depreciation.
Land does not depreciate. So if you are applying 30,000 to the basis of the land and also 30,000 of the sales proceeds to the land, you are only working with the rental building.
You do need to enter 30,000 towards the sale of the land to get it off the books.
The building was entered as an asset in 2019 with a basis of 165,000. That comes out to about 6,000 depreciation per year.
I assume the 1,000 you subtracted from the deprecation the program used was for the months in 2024 that it was a rental since you say it did not sell until April. You should not reduce the depreciation for that.
You also don't say how much deprecation showed on Form 4962 or if you added any other assets.
Lets say the depreciation was 31,000. That would give you an adjusted basis of 134,000 (cost 165,000 less 31,000 deprecation = 134,000)
You sell the building for 280,000. That gives you 31,000 depreciation recapture and 115,000 capital gain.
Depreciation recapture is taxed at your ordinary income tax rate and capital gain at your capital gain rate. So the total gain is 146,000. You would also subtract selling fees.
You're saying the program is showing a 163,000 gain which is 17,000 more than what I come up with, but I can't see your return and don't know what the amount of deprecation was.
If you continue the question, please tell us how much depreciation you "changed it to" and any other pertinent information such as additional assets (Appliances, carpet) you entered.
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