Question: Grandson is accepted into the same M . Tax program and asks Grandfather for assistance. Grandfather agrees to give Grandson $ 5 0 , 0

Grandson is accepted into the same M.Tax program and asks Grandfather for assistance. Grandfather agrees to give Grandson $50,000 in the form of a loan with no interest. Which of the following is true: a. The loan is not considered a gift under the statute because it is for educational purposes. b. The value of the gift is $50,000 minus the annual exclusion. c. Because it is a loan, the value of the gift is not the $50,000 itself, but the imputed interest using the Section 7520 interest rate.

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