At that time, Felicia decided to give her entire interest in the partnership to her alma mater, Georgia Southern University. Assume that none of the partnership's assets constitute ordinary income property or "hot assets." What is Felicia's charitable contribution deduction? What is the amount of the taxable gain that Felicia will recognize on the contribution (if none write 0)?
At that time, Felicia decided to give her entire interest in the partnership to her alma mater, Georgia Southern University. Assume that none of the partnership's assets constitute ordinary income property or "hot assets." What is Felicia's charitable contribution deduction? What is the amount of the taxable gain that Felicia will recognize on the contribution (if none write 0)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Felicia is a 20% partner in XYZ Partners. The other interests in the partnership are
owned by Felicia's parents and sibling. At the end of the year, the partnership had
the following balance sheets (basis and FMV):
Buildings
Land
Liabilities
Capital, Felicia
Capital, Parents
Capital, Sibling
Basis
$200,000
FMV
$350,000
400,000
900,000
$600,000 $1,250,000
$200,000
$100,000
200,000
100,000
$600,000
$200,000
$262,500
525,000
262,500
$1,250,000
At that time, Felicia decided to give her entire interest in the partnership to her alma
mater, Georgia Southern University. Assume that none of the partnership's assets
constitute ordinary income property or "hot assets."
What is Felicia's charitable contribution deduction?
What is the amount of the taxable gain that Felicia will recognize on the contribution
(if none write 0)?
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