Selling/transferring house to my mother - cheapest way?

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I purchased a house less than a year ago fro 280K. Since then it appreciated by about 20K. Also, I put in about 20K of improvements in it.

What's the best way to make the transaction and minimize the tax burden? Should I just "borrow" the money from my mom to pay off the loan, and then file a quitclaim? 

Or should I record it as a purchase contract? If so, how much should I sell it for? Can I sell it for 300K and still not have to claim capital gains due to improvements I made? Or should I just sell it for 280K?