Bud received $200$ shares of Georgia Corporation stock from his uncle as a gift on July $20,2022,$ when the stock had a $$45,000$ fair market value $($FMV$).$ His uncle paid $$30,000$ for the stock on April $12,2006.$ 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 giff tax of $$1,500.$ Without considering the transactions below, Bud's AGI is $$45,000$ in $2023.$ No other

transactions involving capital assets occur during the year.

Read the requirement.

a$.$ He sells the stock on October $12,2023,$ for $$48,000.$

b$.$ He sells the stock on October $12,2023,$ for $$28,000.$

c$.$ He sells the stock on December $16,2023,$ for $$42,000.$

Consider the four independent situations below for an unmarried individual, and analyze the effects of the capital gains and losses on the individual's AGI.

View the four independent cases.

Requirement

For each case, determine AGI after considering the capital gains and losses.

capital gains and losses. $($Use a minus sign or parentheses to enter a loss.$)$

NSTCG $($NSTCL$)$

NLTCG $($NLTCL$)$

AGI after considering

capital gains and losses

Situation $1$

Situation $2$

Situation $3$

Situation $4$

$ $77,000$ $ $78,000$$$98,500$

Four Independent Cases