Generally, cash or property that you receive as a gift or inheritance is not included in your income. Recipients of gifts do not need to declare them on their income tax return, regardless of the amount.
However, if a cash gift later produces income, such as dividends and capital gains, that income will be taxable and you will receive a 1099 form to indicate the taxable amount.
Donors can give cash gifts up to a certain amount each year without gift tax consequences. The annual gift tax exemption (per recipient) is $14,000 in 2017. For more information about gifting, see IRS Publication 950.
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