Bob received 900 shares of Alabama Corporation stock from his uncle as a gift on July 20, 2018, when the stock had a $ 225 comma 000 FMV. His uncle paid $ 90 comma 000 for the stock on April 12, 2002. The taxable gift was $ 225 comma 000, because his uncle made another gift to Bob for $ 32 comma 000 in January and used the annual exclusion. The uncle paid a gift tax of $ 11 comma 250. Without considering the transactions below, Bob's AGI is $ 35 comma 000 in 2019. No other transactions involving capital assets occur during the year.