Wow! Thanks for clarifying the LLC. This has become a real cluster now! I would highly advise you forget about using any flavor/version of Turbotax for this endeavor, and seek professional help. Generally, since you are "in the business" of building/buying/selling real estate, the property would be treated as inventory for the business. Only problem is, the business does not own it. It's not just a simple matter of the two owners making their respective share a capital contribution to the business either, since the intent is to sell it. The major reason (among others) is because the business can not sell that which it does not own. Wouldn't be that big an issue if it was a partnership instead of an LLC.
You 'really' need professional help, as there are other legal ramifications you're obviously not aware of. Even I myself am not aware of all of them. But I am aware enough to know this is not as simple as you may think. Please seek professional help for this.
