Thank you, qbtechmt, for your response.

The LT vs ST can come into play because, like you said, the difference is capital gain vs income.  Since the situation deals with a capital investment, one could take the position that it could be similar to purchasing a stock (another capital investment) and reinvesting the dividends.  Those reinvested stock dividends, if sold prior to a 12-month holding period, will be treated as a short-term capital gain and thus, taxed at a different rate than the long-term capital gains tax rate.  My goal is to try and discover that there is no "fine print" in the tax code when it comes to the situation that I described.