Thanks for following up. There won't be any taxes due when she dies and you inherit her interest in the property. California does not have an estate or inheritance tax
. And, on the Federal level, an estate is exempt from estate tax
unless the estate is in excess of $5,250,000. Thus, you don't need to worry about taxes at death with respect to this property. If she gives it to you now, however, her basis carries over to you; if you get it at death, the basis gets stepped up to its fair market value...so, if it's appreciated since it was purchased, you are better off tax-wise getting it at death than getting her interest now.
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