Rip,

I had a similar question and your reply was helpful. One more question - For the withdrawing member, how to distribute his capital gain as shaort tem and log term ? For example, his cost basis is 2000 and he is getting paid 3000 based on current valuation. The gain is 1000. Out of the $2000 for cost basis, 1000 are over the short term (within last year). Does this mean, of the 1000 capital gain, 500 is short term gain, and remaining is long term ?

Thanks in advance.