Which of the following statements is true regarding the income tax of the donated property?

The statement that the donee is responsible for the income tax on the property after the donation is accurate because when a donor transfers property as a gift, the donee assumes ownership of that property. This includes any associated tax obligations that arise from the property's appreciation in value or income-generating capabilities once it is sold.

Under income tax law, once the donee sells the property, they will then recognize any gain or loss based on the property's adjusted basis and the amount received from the sale. The gain or loss is calculated based on the fair market value at the time of the donation if it's appreciated property, implying that the donee faces the tax implications of that property post-donation.

Moreover, donated property itself generally does not create immediate income tax consequences for either donor or donee at the time of the gift. It's the sale or transfer of that property afterward that subjects the donee to potential income tax liabilities.

In contrast, the other statements fall short of accurately describing the tax responsibilities related to donated property. The donor does not remain responsible for the income tax associated with the property after the gift, and there’s no shared tax obligation between donor and donee regarding the income generated from the property after the donation. Thus, the donee