Yes
First enter the 2021 information relating to the rental, such as 2021 income and expenses. Report that it was sold but you do not enter the details of the sale here.
Revisit the rental section click edit for the property and scroll down to Sale of Property / Depreciation continue to enter the details of the sale in this section.
You don't say what the property sold for, but you should be aware that you need to recapture depreciation when selling a business asset. Additionally, the IRS is not concerned with whether you properly claimed the depreciation or not, it still needs to be recaptured.
If you first reported the rental with a basis of 150,000 it would have deprecated over half since rentals have a useful life of 27.5 years.
Land does not depreciate so you should have allocated part of the 150,000 to land.
Lets say it was 140,000 building and 10,000 land.
That would give you about 71,000 accumulated depreciation. That needs to be recaptured, so right off if you sold at or above the original cost of 150,000, 71,000 will be ordinary income on Schedule 1.
Anything over 150,000 would be capital gain.
The 60,000 in improvements would have been added to the basis if done before it was placed in service, or listed separately if made afterward.
If before, the basis would be 200,000 for the building and 10,000 for the land, so depreciation recapture would 100,000 and capital gain would be anything over 210,000.
If after, you first allocate part of the sales proceeds to the remaining value of the assets, then the remaining sale proceeds to the land and building.
In your case, you can't just allocate 60,000 to the improvements because they should have been depreciated as well.
If you don't enter the land amount, the program most likely will allocate zero for the land sale, which would generate a loss, but that loss would be offset by the additional gain on the building.
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