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A gift to an individual is not tax deductible even though you are required to report the gift if you give any one person more than $14000 (annual gift allowance).
The form 709 is used to report gifts when you go over the yearly amount but it is also used to claim the lifetime allowance so you do not pay any actual tax.
How you give your daughter the money does not have any relevance on your tax on the distribution or your reporting requirement for form 709. You can give her a check or cash even.
Your tax is going to be on the full distribution form your IRA. Then the gift is a separate tax event which is reported on form 709.
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Did you need more information about reporting each event?
That is correct.
The distribution is still reported as income by you and if the gift is more than the annual allowed amount ($14000) you must use form 709 to report it.
You will not pay tax on the gift as long as you have not already used up your lifetime limit ($5.45 million). You do have to report because the amount over $14000 reduces your lifetime amount and your estate has less when you pass away to claim for deductions on Estate tax.
Is that clearer? Let me know please