Instructions: In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision.  Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. The four incorrect answers are other holding statements. You should find the correct option. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Input: tax annual exclusion under section 2503(b) are regarded as taxable transfers_” Treas. Reg. 25.2518-2(c)(3). Clearly, the sentence upon which the Eleventh Circuit and now our Court mistakenly rely is concerned with the $10,000 annual exclusion on gifts and has absolutely nothing to do with pre-Act transfers. There is a definitive difference between a taxable transfer that qualifies for the annual exclusion and on which a gift tax therefore is not imposed, such as an annual $10,000 check to a favorite nephew, and a transfer as to which the gift tax is not even applicable, such as a transfer pursuant to an obligation created in an antenuptial agreement executed in 1931 between a man and woman married later that year. See Commissioner v. Copley’s Estate, 194 F.2d 364, 367 (7th Cir.1952) (<HOLDING>). The creation of the Ordway trust in 1917 
 Holding statements: (A) holding that the act is not retroactive (B) holding that the act is retroactive (C) holding that transfers made in 1936 and 1944 pursuant to the 1931 agreement were not taxable because to hold as the commissioner would have us do  would require a retroactive application of the gift tax which we think is not permissible see sec 501b of the revenue act of 1932 (D) holding retroactive application (E) holding retroactive application of the act to prosecution that was pending before the effective date of the act was precluded because the act is prospective
Output:
(C)