Lynch joined an investment club when he got his first job at the accounting firm after he passed his CPA exam. The investment club was actually an LLC and the club did really well. After 10 years, his 5% membership interest in Box-Call, LLC was worth $200,000 and his basis was only $40,000. The club only holds marketable securities. Lynch is tired of going to the weekly meetings of the investment club and has arranged a trade of his interest in Box-Call, LLC with a friend for a 50% interest in Live Decoy, LLC, and up and coming wine distillery. The friend’s basis in Live Decoy, LLC was $100,000 and it was valued at $200,000. Are there any tax consequences to Lynch?