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Sophie receive a property tax bill of $2,300 that she cannot afford to pay. As a result, Sophies's mother, Joyce, pays the property tax bill.
Sophie receive a property tax bill of $2,300 that she cannot afford to pay. As a result, Sophies's mother, Joyce, pays the property tax bill. What is the tax impact of Joyce's payment?
$2,300 of income to Sophie
Joyce now owns the property.
$2,300 of expense to Joyce
Joyce has gifted $2,300 to Sophie.
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