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Gifts are taxable but NOT to the person getting the gift. The receiver does not report the gift as income or as anything else.
The giver should just report the gift on IRS Form 706. They then keep track of all their gifts during a lifetime and then when the last return is filed for them via their estate return, all the gifts will be added to what was left and IF OVER the amount for estate tax the estate pays it.
However, IF the receiver is getting some benefit from the government that is linked to an income or asset limit - the receiver should report the gift to who ever is the designated government entity.
Because any gift goes against their estate - bumping it up for taxation of their estate when they die. The reporting is only documentary , accumulating through the years - until they die when an estate tax has to be figured.
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