Q: My mother has quit-claimed her house to me. Will I have to pay capital gains taxes when I sell it?

A: You might. It depends on how much the property is worth.

If you live in the home for 2 years as your primary residence, and then sell it, you can keep up to $250,000 in profits tax-free or up to $500,000 if you’re married. You’ll owe long-term capital gains tax on any profits in excess of those amounts.

But the way you calculate the gain is a bit different because you acquired the property through quit-claim deed rather than through inheritance or sale.

If she had willed the property to you, or sold it to you, you would owe the difference between the purchase price (or the value on the day she died) and the price at which you could sell it.

Because you received the property through a quit-claim deed, when you sell the property you will owe taxes on the difference between the price your mother paid and the sales price, which could be a lot more.

For more information, talk to your accountant or tax preparer.