@LL65 wrote:
The home was quit claim deeded to my husband, who then sold it. And yes, this was for the 2022 taxes she filed.
Then, hopefully, the attorney did not report or, more accurately, misreport the gift as a sale on your mother-in-law's income tax return.
Regardless, a gift tax return (Form 709) should have been filed for your mother-in-law and that return would contain the fair market value as well as her adjusted basis.
