She figures her parents spend about $1,000 a month on her, including a car payment, car and health insurance, school and other costs”
Geee- and it meets the test of not going over $12,000, which is the GIFT limit for the IRS. She doesn’t even pay a minimal income tax on all these gifts....
Are you saying that she should pay tax on it?
The donor already paid the income tax when he or she made the money in the first place.