What are the tax implications of a normal sale of a house, where the owner would make a "profit"? Does it make any difference if the house is owner occupied and for how long they have owned the house?
A single owner can have a gain up to $250K with no federal tax consequences. $500K for a couple. Above that, it's a capital gain. They must have lived in the home for 2 of the 5 years prior to the sale, else the numbers may scale back, if allowed at all.
If it was not owner occupied, the above is ignored, a rental has rules far more complicated, as the property must be depreciated during the time it was owned, and often there's a gain to be taxed for the fact that depreciation lowers the basis each year.
Edit - if the 2 years is not met see Reduced Maximum Exclusion for possible partial exclusion depending on cause of sale.