Required unless the lease is user-classified operating or capital; found on the Inception tab. If the lease is partly or completely land, enter the fair value of the land portion of the leased assets. If this is 25% or more of the total fair value (i.e., 1/3 or more of the value of the building), the land portion is always operating (unless there is an ownership transfer or bargain purchase option), and the Annual Land Rent Portion is calculated automatically by EZLease. If there is an ownership transfer or reasonably certain purchase option on a part land/part building lease, you must enter the lease as two separate records in EZLease, because the land should not be depreciated while the building should.
If a lease has an entry in the Fair Value of Land and no entry in Fair Value of Building/Equipment, the lease is considered "land only" and is always operating (unless there is an ownership transfer or reasonably certain purchase option, which is extremely rare).
If the land is less than 25% of the total value, the lease is considered as a unit, and is fully capital or fully operating based on the combined value. While FAS 13 does not explicitly state so, some accountants interpret it to allow splitting up the land and building portions for all leases, even those with small land values; they consider that combining land and building components is offered to simplify the process, but not required. Note, though, that this is contrary to the actual wording of FAS 13. If you wish to treat the land portion as operating when less than 25% of the whole fair value applies to the land (and the overall lease is capital), you must enter two separate leases in EZLease, one for the land and one for the building.
For ASC 842, EZLease does not permit a part-finance, part-operating lease. A part-building, part-land lease must be broken into two records, which can be linked. For IFRS 16, a part-building, part-land lease is permitted, since all of it is a finance lease.