Jackson could gift his BB winnings to his parents effectively tax free because he can charge it to his lifetime gift tax exclusion which is 11.18 million So if he gives his winnings to his parents (250k each) the first 15k each is tax free and the remaining 235k would have to be reported on a gift tax return but the tax due would be charged towards the lifetime limit and no actual tax payment would be due unless Jackson gifts more than his lifetime exclusion during his lifetime. Gifts are never taxable to the recipient. Geez, I just tax geeked out on you. Sorry. Lol