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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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