Taxation on property purchased below market value

State of Mississippi

I am trying to find out if there are taxation issues for buyer or seller in a transaction (mother and son) where a $130,000 home is sold from mother to son for the balance of existing mortgage of about $20,000. Son has pulled mother from foreclosure for third time. She wants to walk away from home. If he purchases it, will he, or she, incur taxes in connection with the sale? He knows there will be the normal property taxes without homestead exemption on the second house.

It will be treated as an investment property unless she gives her equity to you and some one here feels kindly enough to follow up a troll......theres different ways to go about this.