A gift back and forth would probably be viewed by the IRS as a sham transaction. If so the sale should have been reported on the installment sale method in 2023. Since the proceeds were not collected until 2024 that would be the year the gain would be taxed. Failure to elect installment sale reporting would result in the sale being taxable in 2023, You need the help of a tax pro. Perhaps they will see things differently.
