Thank you.  They sold it at a gain.  The 1099-S through me.

You betcha!

On screen 17 (Dispositions) do I put a 1 showing the basis is not reported on the 1099-B to the IRS?  The sale was reported on a 1099-S.

If the building was going to be for a rental or to sell, I believe you should put a -1 under "Form 4797:Depreciation Allowed" and type in "1" to designate as 1250 property. If it was to build for personal purposes, I guess just checking 2 under the 1099B question, and leave 4797 alone.