Title says all, I really hate getting bad gifts and feeling want to "give back" or "owing a favor"
I always accept gifts, regardless of what it is.
Some people are gifters, and they must gift to others. It's a way of them to show their appreciation of you.
Not to accept their gift, can dramatically hurt their feelings, and they may feel that you do not have the same appreciation of them, regardless if you have appreciation or not.
I am not a gifter, and the only times I expect gifts are Christmas and my Bday. Any other time can confuse me a bit, but I always accept them.
Simply say "thank you", and accept it.