.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 2015. The bracelet is appraised at $8,000 on that date. In October 2015, 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.

According to the test bank 2016, the answer is (b) 2005. Please explain why it is not 2015 in this case. Thank you