On Schedule E Worksheet what do I put in line 8? Error says land included in cost should not be entire value of asset - if land change asset code to X ????

There will be two screens to enter information about cost and the land value. The first screen shot below asks for the total amount including land. The second asks for property tax value. Check that the amounts are not the same in these two screens.

My Taxable value is significantly less than my total value. Is this normal?

Your taxable value may be less than the total value depending on how property tax is computed in your area.

The only thing the property tax statement is used for for income tax purposes is determining the ratio of land value to improvement value for depreciation and sale purposes.

@edwardaz1