Jack transfers property worth $250,000 to a revocable trust on January 1. Two-and-a-half years later, when the property is worth $300,000, the trust becomes irrevocable. Which of the following statements is correct?

A) A $300,000 gift occurs when the trust became irrevocable.
B) A $250,000 gift occurs when the original transfer was made.
C) A $250,000 gift occurs when the trust became irrevocable.
D) Jack may elect which amount to report as a gift.


A) A $300,000 gift occurs when the trust became irrevocable.

Business

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Answer the following statement true (T) or false (F)

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