B what is the amount of karens charitable

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b. What is the amount of Karen’s charitable contributions deduction?
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Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 15 Reading: Paragraph 1110. 1. Austin owns a 20% interest in Hayes Partners, a general partnership. The partnership allocates profits and losses among partners in proportion to their interests in partnership capital. At the end of the year, the partnership had the following balance sheets (tax basis and FMV): Basis FMV Buildings $100,000 $200,000 Land 200,000 450,000 $300,000 $650,000 Liabilities $450,000 $450,000 Capital, Austin (30,000) 40,000 Capital, other partners (120,000) 160,000 $300,000 $650,000 Austin is considering transferring his interest in Hayes Partners to his wholly-owned corporation in exchange for additional stock. a. Will Austin be required to recognize any gain in connection with the transfer to the corporation? If so, how much?
b. What will be his tax basis in the additional stock received from the corporation in connection with the transfer?
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Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 16 c. How would your answers change if the partnership’s liabilities had been only $200,000, rather than $450,000? (Note: partner capital accounts would change accordingly.)
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