I received money from a relative who exceed the gift amount and now is reporting it on a form '709' gift tax return. Q-do I report it as income?
Generally, the donee does not report the amount disclosed by the donor on IRS Form 709 as income. Gifts are usually tax free to the donee (recipient). The donor pays the gift tax, if any. The Donee does have to pay tax on the income earned on the gifted amount.See question