I refinanced my mom's house about 8 years ago , and have been on deed / loan of the house throughout these years . My mom was only on the deed , and she had been paying the mortgage . She died in November 2012 . We had refinanced and taken money out of the property several times threw out the years . An identical house across the street sold about a month ago for $ 256 , 000 . . . I owe only $ 204 , 000 on my mom's house . If I decide to sell how do I calculate the taxes owed ? This is not my primary home , but it was about 5 years ago . I've never put it as a rental since my mom was the one who lived in it recently . And I have a high income and made over 250K in 2012 . . . thanks .