Yes, you may report this transaction as an Investment Sale. If the sale resulted in a loss, you may claim that loss on your tax return.
If you never included this land in the cost basis for your Rental Property, then you have no adjustments to make for that property. However, if the land was included in the cost basis of the rental property, you will need to reduce your cost basis for any future sale. As you said, land is not depreciated, so you don't need to make any changes to the basis of your Rental Real Estate Asset for depreciation.
The
easiest way to find this section of TurboTax is to open your return and use the
Search box at the top right side of the TurboTax header. Click on the
magnifying glass, type in "investment sales", hit Enter, and click on "jump
to investment sales" to go directly to beginning of this topic.
On the page "Choose the type of investment you sold," check the box for "Land." Follow the prompts to enter the sale information. TurboTax will calculate the gain or loss on the sale.
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