Gifts received are not subject to income taxation; however the donor is subject to the gift tax rules on the making of a gift.

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Gifts received by an individual are not taxable as income. However, the donor may be subject to gift tax rules if the gift exceeds a certain amount. The gift tax rules are designed to prevent individuals from avoiding estate tax by giving away their assets before death.

Gifts Received Are Not Subject to Income Taxation; However the Donor