[kixiQu]

> It's because there is no exchange, if I give you a birthday gift can that be considered income? Obviously not as I am not asking for something in return.

> However:

> If I buy you a gift and we agree for the gift you do task x for me. Now that is income and the value of the gift must be considered income on your tax return.

Caveat donor! The hand of the taxman extends somewhat further than laid out here.

https://www.irs.gov/businesses/small-businesses-self-employe... :)