Robert is down on his luck and asks Mae for a $20,000 loan. Mae is quite wealthy and decides to give Robert the $20,000 as a gift rather than a loan. Unfortunately, the amount of the gift is more than the allowable deduction and Mae will be taxed on a portion of the $20,000 that she gives to Robert. On what is Mae being taxed?
A) Her income
B) Her wealth
C) Her property
D) Her purchases
E) None of the answers are correct
B) Her wealth
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