Tax-free liquidation of LLC?

[Jarrod Sigsby]

Currently 1/3'rd owner in 4 LLCs that each hold a separate single family residence rental. The 4 LLCs are subsidiary LLCs to a parent LLC. If we sell one of the houses is that considered a distribution and we have to pay taxes? That is what I thought but consulted a lawyer about a different issue and they said if you don't distribute the proceeds you don't have to pay taxes. Our goal is to use some of the proceeds to pay the mortgages off of the other 3 properties so just trying to determine if we are doing this pre-tax or post-tax.