 You get what's called a stepped-up basis upon her death. Your basis becomes what the value of the house is at market value at the time of death. So if she dies and the house is worth $360, you sell it for $360, you have zero gain. You put 100% of those dollars in your pocket. The way it is now, you're going to pay taxes on everything over what she paid for it or about $300,000 gain.