@LL65 wrote:
Hello! My mother in law gifted my husband a rental property this past year. He then sold it 6 weeks later. Her tax attorney reported this on Form 4797, Part l.
Have you contacted her tax attorney and inquired as to why he reported a gift on Form 4797 which is used for the sale of business property?
Was Form 4797 use (by her tax attorney) for the 2022 tax year to report the sale on your mother-in-law's 2022 income tax return? Either that is the case or the attorney erred in reporting an actual gift on Form 4797.
This begs the question as to whether your husband ever took title to the property and sold it or if your mother-in-law sold the property and then gifted the proceeds to your husband.
