As a mentor of ours used to say, “When you get a gift, what do you say? Thank you.” That’s it. How does this apply? Well, to your second question, the recipient of a gift never has income. At the same time, giving a gift doesn’t give you a deduction.
Here are a few pointers. You are currently allowed to give a gift to someone of $13,000 without incurring the gift tax. This means that dad can give $13,000 each to his son and daughter-in-law, and also to his daughter and son-in-law