The taxation of distributions from charitable gift annuities to annuitants is reported on Form 1099-R.
Note: Report in box 1 the total amount distributed during the year. Report in box 2a the taxable amount (including all reportable capital gains). If any amount is taxable as capital gain, report it in box 3. Please advise the annuity recipient of any amount in box 3 subject to the 28% rate gain, such as for collectibles, and any unrecaptured section 1250 gain. Report in box 5 any nontaxable amount. Enter Code F in box 7. See Reg. ยง1.1011-2(c) Example 8.