Ricky is relatively well-known in the world of show business and has connections to many famous musicians. He and Lucy are regularly invited to music award shows and even attended the Grammys this year. Attendees of these award shows are often given gift bags with expensive items. This year, at the Grammys Ricky received a new Rolex watch and Lucy received a pair of diamond earrings. The items were free as long as Ricky and Lucy agreed to use them while being photographed. They want to know if these gifts (estimated value of $13,500) are considered taxable income.