tagteam, out of curiosity, since this is effectively a reporting exercise only and since most Americans have estates less than $11.2mm (joint) which is $22,4mm through 2025, what is your opinion if the 709 form is simply not submitted? if the IRS is going to harass for something that won't generate any tax for over 95% of Americans, in any event what is the incentive of filling it out?
DML - what documentation do you have that the market value of the property was $350,000? (if your daughter took out another loan and there is an appraisal from that transaction, that would work)
