Question $3$

Santana, a citizen and resident of Brazil, buys $$100,000$ worth of stock in Google through his brokerage account in New York City. Thereafter, he makes citizen of the United States and resides in Panama. Which of the following statements accurately describes the gift tax consequences of this transaction?

Santana's transfer is not subject to the gift tax because his son is a nonresident alien who is not subject to the federal gift tax on intangible property transferred by gift in the United States.

Santana's transfer is not subject to the gift tax because nonresident aliens are not subject to the federal gift tax on intangible property transferred by gift in the United States.

Santana's transfer is subject to the gift tax because he is an individual who made a transfer of property by gift which is in excess of the annual exclusion.

Santana's transfer is subject to the gift tax because he is a nonresident alien who made a gift of property located in the United States.

None of the above statements accurately describes the gift tax consequences of this transaction.