Never look a gift horse in the mouth, but you may want to ask the donor how much they paid for it. The reason is that a gift, unlike an inheritance, has the same basis in the hand of the person who gets it as it had in the hands of the person who gives it. So, if Mom gives you her home (a very BAD idea without a properly drafted joint property agreement) for which she paid $50,000 but is now worth $150,000, you will owe the capital gains tax on the difference, or $100,000, whenever you sell the home. If Mom should hold on to the home until she dies, then it receives a "step up"; in basis, so that your basis would be the full $150,000 and you would owe no taxes if you sell it for that price.