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

[Bill B.]

If it’s her primary there’s no tax on the sale. If she wants to give everyone $15k (or whatever the 2022 limit is) every year, no taxes no paperwork. If she wants to give it all away at one time (Don’t ask me how many people regret doing this. Can you imagine if she has to ask for some of it back and her ”loved ones” say no? Not good) she simply counts it as part of her lifetime exemption. Assuming she’s worth less than several million this will be a non-factor. Have her talk to her cpa or tax guy BEFORE she does anything and truly recommend she hangs in to most of the money and simply makes yearly gifts.