Ignoring the annual per-donee exclusion, all the following transfers are gifts for federal gift tax purposes EXCEPT:

Ignoring the annual per-donee exclusion, all the following transfers are gifts for federal gift tax purposes EXCEPT:
A . A creditor cancels the promissory note of a friend who recently became unemployed.
B . A grandmother reimburses her grandson for his college tuition costs.
C . A father lends his daughter a large sum of money interest free for a period of 2 years.
D . An individual gratuitously performs valuable services for the benefit of a close friend.

View Answer

Answer: D