Selling PROPERTY held in LLC for 4 yrs & rented. Eq partners-Tax

[Naveen Desai]

Hello, 

We held a rental property in an LLC ( TX prop and TX LLC) for approx 4 years and now selling it. When we sell the property, how do we know the capital gains for the property. The LLC comprises of multiple partners of equal stake. (There are other properties in LLC which we will continue to hold), so LLC is going to stay.

Now when we sell this subject property, should we distribute proceeds to each partner of LLC and they handle their taxes themselves OR, should we first take the sale proceeds into the LLC which will call for capital gains tax and then distribute funds to all partners and then again they may have to pay taxes as their income for the year on the profits.

What is the best approach in such scenario. Please help/advise. 

Thanks.