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Good evening. It would have been far better to have received the house after she died. By receiving it as a gift prior to death, your basis in the property is her purchase price plus any capital improvements she made. Thus, you would have a capital gain equal to the sale price (less closing costs) less your basis. Had you received it at death, the basis would have stepped up to fair market value and there would have been no gain on the sale. The capital gains tax rate on your capital gain is zero if you are in the 10% or 15% marginal income tax rate. Otherwise, the capital gain rate is 15%.
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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.