This is why you need to send your question to support, not to this list. It sounds like you are misinterpreting something. Unless we can discuss the specifics of what you are looking at and what you are seeing, it is hard to answer you.
First you say the member won't have a tax issue since her partial withdrawal won't exceed her tax basis in the club then you say it is shown somewhere as being Long term.
If she won't have a tax issue, why is there a question?
It doesn't show on the withdrawal report that it is short or long term if she does have a taxable gain on the withdrawal so where are you seeing it classified as long term?
The partial withdrawal taxation status is determined as of the end of the year, so if there is a taxable gain, it would be long/short term based on her time in the club as of that point.
Laurie Frederiksen Invest with your friends! www.bivio.com
Bivio Support has reviewed our distribution; we just didn't discuss this issue.
Since the club has existed since 1997, all the members' tax bases are far in excess of the partial withdrawal we're contemplating, even the new member's. It's just that because she's only been a member since April 2016, I wondered if it was an error for her partial withdrawal to be classified as LTCG.
I wonder if the simple solution is to do her withdrawal in May 2017, at which point she'd have been a member for more than one year, presumably making this whole question moot..