Is your father in law treating it as a gift or is he claiming it as a deduction on a 1099 for services?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Most likely won't apply for just $10k.
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018, the annual exclusion is $15,000.
There is a lifetime amount of $5.49mm.
You can read more here:
https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N
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