IRA
re. your last sentence "in general funding partial
withdrawals with cash is the easiest choice"

I am restating the situation:
Over years a partner has invested PLUS distributed earnings,
and now has a cost basis of $10K. His ownership in the
club's portfolio amounts to $17K = his capital account
value. He asks for a partial withdrawal of $8K.

1.
The club is fully invested and has no cash at hand.
Therefore members pay-in $8K.
2.
For $8K partial withdrawing member, club liquidates units
and club issues new units for members paying in which is for
the latter an increase in units and thus higher,
proportional ownership in their capital account values in
the club.
Isn't this an increase in their future tax commitment when
they will do withdrawals? Didn't these paying-in members
accommodate the one member who made a partial no tax
withdrawal?
3.
According to Dressel's thoughts to transfer $8K worth of
appreciated stock to the one member results for the other
members "in no current gain". Do their number of units
change since the cost basis of the partially withdrawing
member is now $2K? Or does the unit price change? Do the
other members capital account values change? What happens to
their future tax commitments?
4.
Are the accounting and tax programs by bivio and Iclub
treating this partial withdrawal alike?
5.
Cash as the easiest choice, versus, appreciated stock as the
Dressel's 'probably good' effect on the club, is here a
personal judgement involved?

Ado