Lydia Purchased a Sapphire Bracelet for $3,000 While Vacationing in Hong

Multiple Choice

Lydia purchased a sapphire bracelet for $3,000 while vacationing in Hong Kong during 2005.Lydia gives the bracelet to her daughter Amy when she graduates from college in 2016.The bracelet is appraised at $8,000 on that date.In October 2016,Amy sells the bracelet for $9,000.How is Amy's holding period for the bracelet determined?

A) It depends on whether a gift tax was paid at the time of the gift.
B) It begins in 2005.
C) It begins in 2015.
D) It is irrelevant because the transfer was a gift and gifts are always considered to be held long-term.