When you sell, you will pay tax at two different rates.
1) All of the deferred income (i.e., total of the “Cash Distributions” you received over the years) you have received will be taxed at your income tax rate in the year you sell. Your deferred income is not taxed at a capital gains rate. The K-1 reports this amount.
2) Any capital gains on the increase in price (i.e., increase over your basis) is taxed at capital gains tax. We all hope we will have a lot of taxable capital gains to be taxed when we sell...meaning we hope we the price will increase a lot by then. Some hope the capital gains tax will be low at that time.