Karen is a 20% partner in Smith Partners. The other interests in the partnership are owned by Karens parents and siblings. At the end of the year, the partnership had the following balance sheets (basis and FMV):

Basis FMV Buildings $100,000 $175,000 Land 200,000 450,000 Totals $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 partnerships assets constitute ordinary income property, what will be the amount of Karens charitable contributions deduction?

$125,000

None of these

$60,000

$625,000