I would add the closing cost to the basis of both land and building. You would have paid closing costs if you were just buying the lot.
The program does not know what the improvements were, they could have been made to the lot and/or building.
If the work was only made to the building, I would increase the basis for the building only.
Land 60,400
Building 70,600
Land is never depreciated and depreciation on the rental will most likely need to be recaptured when you sell.
According to the IRS:
"Separating cost of land and buildings.
If you buy buildings and your cost includes the cost of the land on which they stand, you must divide the cost between the land and the buildings to figure the basis for depreciation of the buildings. The part of the cost that you allocate to each asset is the ratio of the fair market value of that asset to the fair market value of the whole property at the time you buy it.
If you aren’t certain of the fair market values of the land and the buildings, you can divide the cost between them based on their assessed values for real estate tax purposes."
"Additions or improvements.
Add to the basis of your property the amount an addition or improvement actually costs you, including any amount you borrowed to make the addition or improvement. This includes all direct costs, such as material and labor, but doesn’t include your own labor. It also includes all expenses related to the addition or improvement."
Pub 527
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