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"The Gift of the Magi" is the first Christmas episode of the CBS sitcom Kate and Allie, aired in the show's fourth season.
This page about a Christmas special or an episode from a television series with a Christmas theme is in need of a longer synopsis. You can help the Christmas Special Wiki by expanding this synopsis.
It's the third anniversary of Kate and Allie combining households, but they're both short on money. Mirroring the classic Christmas story by O. Henry, they sell precious belongings in order to give each other special gifts.