Essentially you can rent it for 3 years and then sell with no capital gains treatment.  

The Granary District (“GD”) Project Area comprises approximately ten city blocks of older industrial and commercial development, withisolated residential uses.

But she essentially said she wanted to give it away!

My only concern after speaking with my real estate attorney is the depreciation aspect (since that's one of the best aspects of real estate) and how that would work since the property would essentially be being "gifted" to me. 

That is essentially all we do.  

In areas without public water & sewer, you will also need to know health codes, soils, and wetland issues Essential to know.and finally,5.

This is when a landlord essentially forces you to leave by not ensuring that the place is habitable (or by otherwise not respecting your contract).This is what he is doing here...

To fast forward, essentially the husband had work across many different states/projects and their circumstances changed causing them to move back to their hometown within 3.5 months of starting their 1 year lease.The signed lease was very tight (no PM, just realtor, great neighborhood/friends and us) and covered us for many situations but I do want to get some clarification or advice on best course of action for the following:(please note this info is just from my googling/common sense and again I have no claims to be right in any situation here)1.

This is what can be done in Illinois: Answer the telephone, take messages, and forward calls to a licenseeSubmit listings and changes to an MLSFollow up on a transaction after a contract has been signedAssemble documents for a closingSecure public information documents from a courthouse, sewer district, water district, or other repository of public informationHave keys made for a company listingDraft advertising and promotional materials for approval by a licenseePlace advertisingRecord and deposit earnest money, security deposits, and rentsComplete contract forms with business and factual information at the direction of and with approval by a licenseeMonitor licenses and personnel filesCompute commission checks and perform bookkeeping activitiesPlace signs on propertyOrder items of routine repair as directed by a licenseePrepare and distribute flyers and promotional information under the direction of and with approval by a licenseeAct as a courier to deliver documents, pick up keys, etc.Place routine telephone calls on late rent paymentsSchedule appointments for the licensee (does not include making phone calls, telemarketing, or performing other activities to solicit business on behalf of the licensee)Respond to questions by quoting from published informationSit at a property for a broker tour that is not open to the publicGather feedback on showingsPerform maintenance, engineering, operations, or other building trades work and answer questions about such workProvide securityProvide concierge services and other similar amenities to existing tenantsManage or supervise maintenance, engineering, operations, building trades, and securityPerform other administrative, clerical, and personal activities for which a license is not requiredIn Illinois, an unlicensed assistant may NOT perform the following tasks:Host open houses, kiosks, home show booths, or fairsShow propertyInterpret information on listings, titles, financing contracts, closings, or other information related to a real estate transactionExplain or interpret a contract, listing, lease agreement, or other real estate document with anyone outside the employing licensee’s firmNegotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a licenseePerform any other activity for which a real estate license is required

Some places I work I can do Same neighborhood (that many sell within 6 months)Same style (Colonial/raised ranch)Square footage +- 10%Year +- 3Garage spaces =and I have plenty to get a solid number of properties to work withOthers:Same school district oh gees OK countySquare footage +- 20%Year +- depending on age (something built in 1845 compared to 1904 is essentially the same place, where something built 1996 is different range than 2010)sold within 6 months.... uggh ok 9 months... ugggh ok 1 yearAcres within 10%..... ugggh ok what is acreage selling for there unimproved..... oK I'll adjust...And I am still doing adjustments for 20 minutesThink of it as more of an art than a science.Good Luck