capital gains in California

[Shea Maloney]

Hello, i am trying to get some information about capital gains on a house that my girlfriend got when her mother passed away. she has lived in the house for 2+ years now but has only recently finished probate to receive the deed to the house. when the house was apprised for probate it was appraised at 450K. this means that she will not have to pay capital gains on as she is listing the house for that same amount seeing as she got it due to a death the value of the house is based on that alone and not the fact that her mother purchased it for 150K in 1980ish when the house was originally purchased. does her living in the house the last 2+ year matter if she did not have the deed as it state you have to own the house and live in it for 2 out of 5 years?  thanks in advance for any help.