Gus, a single man, owned a building with a fair market value of $2,000,000. Gus's adjusted basis in the building was $1,000,000.
This year, Gus agreed to sell the building to his adult son, Kal, for $1,300,000. Gus made no other gifts or sales to Kal this year.
What is the amount of Gus's taxable gift?
(A) Gus has made a taxable gift of $2,000,000.
(B) Gus has made a taxable gift of $685,000.
(C) Gus has made a taxable gift of $700,000.
(D) Gus has made a taxable gift of $300,000.