Facts: Frederick owns a building. In July, he put on a new roof for $7,500 and performed $1,700 in repairs to the apartments. Frederick bought the building on 2/1/07 for 350,000. At that time, he estimated the land value was 25,000. He sold the building on 12/31/19 for $305,000. He paid a real estate broker 18,000 out of the sale proceeds and legal fees of 1,250. He sold the furnishings for $12,000.

Right now I'm getting a cost basis of $376,750 (350,000+7,500+18,000+1250). So that would lead to a loss of $71,750 (305,000 - 376,750).

I'm not sure what to do with the land component. Do I lump it in with the rest of the costs or do I treat it as a separate item?