@musicmike1 wrote:
One last question regarding this. Is there any difference if the said property was gifted from my grandmother to my mother and she were to live there as her primary residence for the next five years or longer?
It is at least two years out of the five years prior to the date of sale (i.e., she does not have to own and live in the house for 5 years or longer to qualify for the Section 121 exclusion).
Regardless, if it is just your mother on title and she uses the house as her principal residence, she can only exclude $250,000 of gain.
See https://www.irs.gov/taxtopics/tc701
