Karen is a 20% partner in Smith Partners. The other interests in the partnership are owned by Karen's parents and siblings. At the end of the year, the partnership had the following balance sheets (basis and FMV):
Karen is a 20% partner in Smith Partners. The other interests in the partnership are owned by Karen's parents and siblings. At the end of the year, the partnership had the following balance sheets (basis and FMV):
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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A4
Transcribed Image Text:Karen is a 20% partner in Smith Partners. The other interests in the partnership are owned by Karen's parents and siblings. At the end of the year, the partnership had the
following balance sheets (basis and FMV):
Basis
Buildings
Land
Totals
FMV
$100,000 $175,000
200,000 450,000
$300,000 $625,000
Capital, Karen
$60,000 $125,000
Capital, Parents 150,000
306,000
Capital, Siblings 90,000
187,500
Totals
$300,000
$625,000
At that time, Karen decided to give her interest in the partnership to her alma mater, State Tech.
Assuming that none of the partnership's assets constitute ordinary income property, what will be the amount of Karen's charitable contributions deduction?
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