easy answer. you have to set up the sale of the land. here's what happening
purchase 408500
to land 54000
basis building 354500
selling price 4250000
costs 6040
net sale price 418960
net selling price 418960
basis building 354500
gain 64460 difference depreciation
you must set up the land as a separate asset and allocate part of the sales price and cost of sale to it
