Our 4-member LLC in operation since 2014 owns an income generating farm, which is rental real estate, and also owned a cottage, which we sold in 2019. It's unclear how we register the cottage as an asset, unrelated to the income generating farm, and therefore how we deal with the taxes due on any realized gain from the sale of the cottage.
In what manner was the cottage being used?
You most likely have to add it as an asset (if you had not done so already) if it were being used in a rental activity. Otherwise, it will probably be classified as investment property and the sale will be reported as such (i.e., capital gain or loss) unless in the unlikely event it was being used personally by a member or members of the LLC.
The cottage was not being used at all. It was just being held until we had time to fix it up for sale. We worked on it during 2017 and 2018 and finally sold it in 2019. We incurred and have documentation of expenses to fix it for sale. There just was no obvious place to add an asset within TurboTax Business, other than to add it as a rental property. We never intended to rent it, and of course never did rent it.