How much do you get taxed on a house sale

[Jeffrey Tamaye]

Hi

My mother in law wants to sell her Aiea house, and move in with us.  She wants to split the money from her house 3 ways; between herself, my wife and brother.  

How much will taxes eat away from the sale and the split of the money?

Is it better to have her keep the house and rent it out?  

Are there any “loop holes” I should read up on?  
thanks guys