Quitclaim and Grantors Tax Implications

[Bruce Kinser]

I thought I would throw this out there as I didn't see it addressed in any of the archives.  

The Grantor of a property is asking me what, if any tax consequence, would occur if she transfers the deed to me via a quitclaim deed.  The transaction does not have the Grantor receiving any funds, other than the customary $10 consideration.  

The property will have a little equity at the time of transfer (approx $20K), however, the property is largely encumbered with a mortgage balance of $170K.  The Grantor understands that she is still liable for making the payments, and I will assume that responsibility until renovating the home and selling it outright for a higher price.  

Based on this information, what taxes would be due by the Grantor under this scenario, if any?

Thanks,

Bruce