Taxes for Syndication Sponsor

[Inderpal Chadha]

A sponsor in a syndication who receives 20% equity without any investment is taxed on receiving equity or only on sale of the asset. For example in an LLC has five members with 20% stake, and four only invest cash capital and one receives 20% stake as sweat equity, how is the 20% member taxed. Will the 20% (assuming is equal to $100K), be taxable income for the year - even though only equity was received. OR will this 20% ($100K) be taxed at the time of sale ?

Thanks