we file jointly. we plan to give a gift to our daughter in a large sum but over 3-5 years. We are taking a distribution from a IRA so we take a gift amount and add in additional amount to cover taxes. What I want to know is whether or not i am required to file form 709. Since we are spacing out the amount over time and not exceeding joint allowance which for 2022 is 32000, I am of the opinion that I dont need to file the form despite taking more money out to cover the taxes. Say for example, the gift was 25K but we took another 15K as part of the IRA Distribution for a total distribution of $40K. Only 25K of that amount was the gift we gave this past year.
I do know that if I had exceeded the 32K on a joint basis, I would need to file it. However in this case our gift portion is less than the exclusion even though we had to add to our distribution to cover taxes.
