I can't e-file because it says on the asset entry worksheet I should have $0 as value of land. I sold a rental property and need to allocate a portion of expense to land

[Carl]

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?

[Carl]

Also, what is the classification of the asset? If it's not "Residental Rental Real Estate", then the value of the land can only be zero. Also, if it's for a property improvement, such as a new roof or new windows, then yes, the value of the land *on that specific asset* is zero.

[brad-jones]

I am reporting the sale in the rental section and have the classification as Residential Rental Real Estate. I thought I originally allocated a value to the land cost basis when I entered this in 2010. You are saying if I didn't allocate a value to land originally this could be the issue? How do I verify?

[Lisa995]

There should have been a choice to "report land separate" or not.  If you chose not to report separately, then you wouldn't put a separate value for land, youd include the whole sale amount as one figure.

[Carl]

Basically, we need to know what specific asset you are having this issue with.
First, understand that there are many situations where an asset classified as "residential rental real estate" will have a value of zero for the land. For example, if you put a new roof on the property, that's a property improvement that gets classified as rental real estate. Obviously, the value of the land for that specific asset will be zero.
Next, look at last year's form 4562. Understand that there are three of those form 4562's and you need to be looking at the right one. One prints in portrait format, the other two print in landscape format. You want the landscape format specifically titled "Depreciation and Amortization Report".
That form lists all your assets. Generally, the very first item on that list is the property itself,  and it's the only one that has a value for the land. The only way any other assets would have a value for the land, is if you did actual qualified land improvements.

[Mkconveniencebrokerage]

You don’t need deprecation and amortization  form if you are only deprecating the house only , that form is only used if you are listing the assets for your business, that’s what I was told anyways