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cally1 writes (in part):

Do I need to declare the $5K as income? Do I have tax liability? If it is a gift, how is it handled from his/my tax perspective?

I reply:

The recipient of a gift never realizes income from the gift, though if the gift itself generates income, that income is taxable to the recipient. A donor can have gift tax issues, but those don't begin until you reach an $11,000 annual threshold. Enjoy. --Bob
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