Tax Implications for Refinancing a Property in an LLC and Distributing Funds

[Angus Brooks]

Hey All- I own a small apartment complex in a two entity LLC and am wondering what the tax implications are for a cash out refinance. I have done a lot of these for my own portfolio, but am wondering if the tax implications are different if we do a cash out refinance for this partnership LLC and then have to "distribute" the funds to the members. Both of the members of the LLC we are hoping to do the cash out refinance for are also LLCs if that matters, so it would be distributed from one LLC to another LLC to hopefully the members pockets.

Want to make sure that the money remains tax free the whole way and we don't have any surprises. Thanks for any advice you can give!