ten years ago, marvin purchased land for $200,000. He is still in ill health and is contemplating selling the property and giving the proceeds to his children while he is still alive and can witness their enjoyment of the money. A recent appraisal indicates the property has a value in the neighborhood of $2,500,000. Marvin asks your advice as to the disposition of the property. Which of the following comments is true given Marvin's circumstances?

a. income tax may be avoided if Marvin bequeaths the property to his children instead of gifting it

b. prior gifts to the children need not be taken into account

c. the gain would be considered short-term capital gains

d. the taxable gain on the property would be $2,500,000