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@puravidapto wrote:

Of the 1,000,000 total gain, 400,000 is the capital gain, and 600,000 is the sec 1250 gain. Correct? The gain on the land 100,000 is capital gain as well, so the total capital gain is 500,000.

In this case, separating land from building does not make a difference, actually, when you sell a home, ... Of the 1,100,000 total gain, 500,000 is the capital gain, 600,000 is the sec. 1250 gain, it is the same result, but how wrong is it?

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Yes.

Yes, it is the same result in this case.  However, (a) the Instructions for Form 4797 tell you to report it separately, and (b) in some cases can affect the 1231 gain/loss calculations and carryovers (if I remember correctly, that is primarily when the value decreases, but maybe there are other circumstances that I'm not thinking of).