126.) A taxpayer pays $250,000 in premiums into an annuity, not taking any deduction for the amount contributed, and the taxpayer dies before receiving any annuity payment. What happens to that $250,000?

A) The insurance company keeps the money

B) The taxpayer may be able to deduct the $250,000 on Schedule A

C) The taxpayer's heirs will have to pay tax on the $250,000 because there is no stepped-up basis for annuities

D) The taxpayer will report $250,000 capital gain on Schedule D in year of death