Negating Real Property Deed

Couple A deeded real property (which was and is their
personal residence continuously for 30+ years) to Couple B,
for no monetary consideration, retaining a Life Estate, and
maintaining full possession and control of the property. A
year later, Couple A wants to rescind the transfer. Couple
B has no objection to Couple A's change of heart/mind but
doesn't want to incur any expenses or financial obligations
as a result of the aborted transaction. What are the
federal tax implications for Couple B if they deed their
future interest in the property back to Couple A?
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The original transaction can't be revoked. Therefore, it seems you have a gift of the remainderpersons interest that gets valued using IRS Pub 1457. A federal gift tax return would have to be filed. If the remainderpersons are residents of a state that also has a gift tax, then there would be another gift tax return to file.
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