All of the assets must be sold including the improvements, simply by going to each asset and indicate it was sold. You should allocate the selling price and selling expenses across all assets and an example is here for you to help.
Use the original cost of each asset listed on depreciation, add those together then divide each one by the combined total to find the percentage of the cost for each asset. Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset. If you want you can check the allocation of building and land in your county real estate tax office to determine the percentage of each.
Example: Original Cost (of each asset on your depreciation schedule)
$10,000 Land = 13.33% (special capital gain treatment)
$50,000 House = 66.67%
$15,000 Improvements = 20%
$75,000 Total = 100%
Multiply each percentage times the sales price/sales expenses to arrive at each individual sales price/sales expense.
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