Cash out refi buy out - tax repercussions

[Daniel Mills]

Hi guys,

I know this is a question best asked of my CPA, and I am in the process of contacting him but considering he might not get back to me quickly, I was hoping I could get your ideas here.

I own a property in Idaho with my mom - she is on the loan with me. We bought it in 2015 and it has gone up in value quite a bit. We are in the process of doing a cash-out refinance right now and what I would like to do is give her the money we get from that to basically buy her out and take her off the loan and title. We want to do this to get access to more conventional loans and for asset protection reasons in the future (I don't want to make two separate LLCs for the two properties I own in the state.) 

My question is if this will trigger a tax event. Will my mother have to pay cap gains on the property like she has sold it?

Any ideas?

Thanks,

Daniel