On sale of rental house Turbotax says "must divide sales price between land and asset based on fair market value" but how when only 1 sale price?

[Coleen3 · Accepted solution]

At the time you began renting, you were asked to separate the land from the house as land is not a depreciable asset. You could use that same percentage, assuming the land or house value has not drastically increased in comparison to the other. 

Comparable sales of nearby lots are helpful. Contact a realtor or Zillow.com for that.

Percentage allocation is another way to make a decision. You may want to allocate X% of the value to the building and X% of the value to the land.