Sale of Assets Received as a Gift

Finance

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Sale of Assets Received as a Gift. Bud received 200 shares of Georgia Corporation stock from his uncle as a gift on July 20, 2012, when the stock had $ 45,000 FMV. The uncle paid $ 30,000 for stock on April 12, 2000. The taxable gift was $ 45,000, because his uncle made another gift to Bud for $ 20,000 in January and used the annual exclusion. The uncle paid a gift tax of 1,500.

Without considering the transaction below, Bud’s AGI is a $45,000 in 2013. No other transaction involving capital assets occur during the year. Analyze each transaction below, independent of other, and determine Bud’s AGI in each case.

1. He sells the stock on October 12, 2013 for $ 48,000.
2.  He sells the stock on October 12, 2013, for $ 28,000.
3. He sells the stock on December 16, 2013 for $ 42,000.
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