If a rental property is sold, does the selling price need to split into land part and building part on Form 4797?

[kwyp]

When a rental property is sold, supposed it is sold with 1,200,000. Does it need to split two parts on Form 4797? Supposed  the price split as below: 

1. ) Land selling price: 400,000

2.) Building selling price: 800,000

Where to obtain the above data?  Does it search from final settlement statement, or from the county website which you pay property tax? 

[George4Tacks]

No.

My guess is you may have more questions. 

[TaxGuyBill · Accepted solution]

Yes, although in many cases it won't make a difference.

https://www.irs.gov/instructions/i4797#en_US_2022_publink13087td0e531

An official appraisal is best.  But if that is not available using the PERCENTAGES from the county assessments is fairly common.

[kwyp]

Thank you for your input. Based on the instruction link you sent. The selling price should be split to two parts: Land and building. 

Land appreciation as a capital gain, need to be entered at Part1 line 2 on form 4797

The building appreciation as capital gain, need to be entered at Part III line 20