You are correct. If there is gain that is more than the amount of depreciation previously used there should be some capital gain treatment. It goes from the Form 4797 to the Schedule D and the land would follow this path as well.
When you use the step by step system TurboTax will walk you through it and report it correctly. For this reason I will provide the steps to follow to make sure the entry is completed correctly.
- In TurboTax Premier:
- Federal Tax tab
- Wages & Income
- Rental Income
- Check that it was sold in 2015 on the situation page
- Step through the screens
- Be sure to mark both boxes of purchased and sold
- Follow the prompts and TurboTax will report it correctly
