Tax on Cash out refinance or distribution for an LLC

[Aj Malempati]

Hello BP

My wife and I created an LLC for our rental properties, partnership LLC.

Say, we bought a property for $100k last year with a 20% down ($20k cash into the LLC). With depreciation etc, we showed the balance sheet at the end of the year as follows

Capital in LLC account - $20k, loan balances - $78k and Profits - $2k. It is clear that we pay taxes on the profit. Does this capital balance come into play for the taxes or is it just for keeping track of LLC balance sheet?

For this year, if i refinance and take a loan amount of $110k. Would the LLC or I be paying any taxes?
Capital in LLC account - (-$10k), loan balances - $110k and Profits - $3k. Would the negative $10k in capital LLC be distributed on K1 (say 15k each to husband and wiffe) and taxes are applicable?

Thanks - Aj