John,
You should have asked the question before you made the withdrawal, but it may not be too late to rectify the situation. Taking stock in a partial withdrawal is generally not a good idea. Taking stock in a complete withdrawal is often a great idea. Let me try to explain. In a complete withdrawal, you deduct any cash received from your tax basis for your entire partnership interest. The balance, after cash is deducted, becomes your basis for the stocks received. I won't complicate this further by talking about how you allocate that basis between different blocks of stocks. It's complicated. But the thing to remember is that, with this method, you get out of your partnership with no immediate taxable income. You don't report capital gains until you sell the stock.
Partial withdrawals are an entirely different matter. Here, the stock that you receive is the basis in the hands of the partnership. With highly appreciated stocks, this can lead to unfavorable results for you, since you will have large capital gains when you sell, and probably a capital loss when you get out of the partnership, since your basis in the club will still be relatively high when you reduce it by the small cost basis of the stocks that you took. I am not saying this will always be true. It depends on the figures, but it is true that taking stock in partial withdrawals can lead to unexpected and unfortunate results.
You might explore making your partial withdrawal a total withdrawal. If you took cash for the balance of your position, making it a total withdrawal, and then at a later date reinvested the cash in the club, you might be able to salvage the situation and increase the basis of the shares that you took. It all depends on the figures.
I would be glad to talk to you about this, privately, if you wish to pursue it.
Rip West
Saint Paul, MN