That is not quite right - if no tax or penalty then why would anyone ever file a 709 form if they have nowhere near $11 million assets.
The purpose of the 709 is to apply the gift to your lifetime exemption. Failing to file the 709 makes the gift taxable. Filing late imposes a penalty (not the tax) of 5% (up to 25%) of the unpaid tax each month that it is late.
See this article that explains it better then the 709 instructions do.
https://finance.zacks.com/dont-file-gift-tax-return-8338.html
The difference is, if the property was a gift then it retains the cost basis of the giver, if it was actually a sale (even for $1) then the cost basis is the buyers cost (not $1, but the assessed value of the property on the date of sale.) Property sold for minimum cash amounts should have had an appraisal to determine the actual value (for tax purposes) when it was sold.
That is a question for your attorney.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
