Amy makes the following gift in the year 2016: Gift of a personal automobile valued $40,000 to her adult son. What will be the effect of the said gift?

A. $40,000 is taxable because you cannot gift money to your child.

B. Only $26,000 is taxed due to the $14,000 annual gift exclusion.

C. None is taxable due to $14,000 annual gift exclusion and $26,000 marital deduction.

D. None is taxable because money transferred to a child is never taxable.

Please explain your answer.