The value of the land, and what you allocate to the land (the price you sold it for) are two different things. I'm just guessing, but it sounds to me like when you first entered the property into SCH E (the first year you rented the property out) you allocated $0 to the land. Now, you're trying to say it suddenly has a value of say (for example) $10,000, and that you sold the land portion for $20,000. You are reporting this sale in the rental section aren't you?
