Pedro owns a 60% interest in a general partnership having a $40,000 basis and $200,000 FMV. His share of partnership liabilities is $100,000. Because he is nearing retirement age, he has decided to give away his partnership interest on June 15 of the current year. The partnership's tax year ends on December 31. Pedro's tax year ends on June 30. He intends to give a 30% interest to his son, Juan, and the remaining 30% interest to the American Red Cross. Discuss fully the tax consequences of this gift to him, the partnership, his son, and the American Red Cross. Be sure to include the allocation of the current year's partnership income.