Hi and welcome to JA. I am Ray and will be the expert helping you today.
She may not owe any capital gains taxes if she can claim the $250,00 exemption.She is allowed costs of sale, repairs, etc and then the $250,00 of any profit assuming she meets the requirements to claim the exemption.
Generally, you can exclude up to 250,000 dollars in capital gains if filing singly or 500,000 in capital gains if filing jointly. As you have noted, this is predicated on owning and living in the home for at least 2 of the last 5 years.
If she is going to net out more than $250k you would need a CPA here to figure out the amount here, it is based on estimated income taxes including this amount.
For common financial investments, the maximum rate on long-term gains is 20% and applies to those in the top income tax bracket. Individuals in the 25% to 35% brackets will be subject to a 15% long-term capital gains rate. Those in the 10% and 15% brackets have a 0% capital gains rate.
She is probably better off selling this now as you propose to take advantage of the exemption under current law.
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.