Final answer:
The correct answer is a. Gift but typically, the gift tax is paid by the giver, not the recipient. The student receiving the sports car as a gift would not be responsible for this tax.
Step-by-step explanation:
If a high school student receives an expensive Italian sports car from a rich aunt as a graduation gift, the form of tax that the graduate must pay is a gift tax. However, it is important to note that in the United States, the responsibility to pay the gift tax usually falls on the person giving the gift, not the recipient. The federal gift tax applies to transfers of property or money while the giver is alive, contrasting with the estate tax, which applies after a person has died. The introduction of the gift tax was to prevent wealthy individuals from avoiding estate taxes by giving away their wealth before death. The student does not have to worry about sales tax, as it is typically paid at the time of purchase. Property tax is assessed annually based on the property's value, not upon receipt of the property as a gift. Lastly, inheritance tax is not applicable in this scenario, as it applies to transfers of wealth upon someone's death, not a living transfer through a gift.