Transferring to LLC. Is capital gain tax due?

[Eddie Ziv]

I'm in a process of transferring some of my properties to an LLC entity. These are four properties that were bought within a period between 3-14 month ago. The LLC is structured in such way that my wife and I own two percent and the predominantly shares of 98% owned by another LLC in which my wife and I have 50% of the share each.

The properties bought for a total amount of $39,000 in cash (No liens). Since there were substantial improvements done or in the process of being done, I estimate the current total value at $142,000. My question is, do I have to pay capital gain for the difference?
My assumption is no since there was no moeny exchanged and by structure, LLC is a pass-through entity when it comes to taxes.

Please, don't guess. Reply only if you have an educated answer.

Thanks.