Tax implications of deeding out then back to LLC during loan

[Brad Shepherd]

(This is not a due on sale clause question.) It's common practice to deed a property out of then back to an LLC during a refinance process in order to get better loan conditions. I'm considering this, but nervous about tax implications. Has anyone ever experienced any tax issues from this process, or know how to avoid any issues? Because technically this is a distribution to the LLC members, and wipes out the cost basis of the asset (deeding it back and forth "for consideration of 10 dollars"). I know this deeding trick is common practice for loan purposes, but I'm really curious to hear thoughts regarding the tax implications.