I pay tithing on cash gifts. This is regardless of if the giver is LDS and paid tithing on it first, or not. I would expect children to do the same. Any monetary gain, earned or received as a gift, or found, or whatever the circumstance, if it's gain, I pay tithing on it. The way my bishop explained it was any monetary gain should be tithed. This includes money earned from work, gifts, selling something for a profit, etc. If I was to walk outside and have money raining down from the sky, I would, with out a doubt, pay tithing on that!
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