Tax question for off market sale (wholesale)

[Joe Sadusky]

Hey Guys! 

I have a tax related question for an off-market deal that I am about to get under contract. 

Quick rundown of the situation:

Client is living in a property that was purchased by his sister in 2002.  She bought the house for $120,000 cash and there is no mortgage.  The house is in really rough shape and my client wants to sell the house to us for an agreed amount of $95,000. 

He is asking about taxes that would need to be paid due to the sale of this property (to be incurred by the owner- his sister). 

Since she will be selling me the house for less then what she bought it, is there no capital gains?

What other taxes would she need to pay for this sale (approx.)?  The property is in PA. 

Thanks in advance for any help!