@jennifer-frericks no it doesn't. Some of you gain would be taxed at zero and some would be taxed at 15% whether or not you had the $50,000 lump sum payment from SSI. So the $50,000 will not "force" you into the 15% tax bracket; you are already there with a $150,000 gain (after the $250,000 exclusion), even if there was no $50,000 lump sum.
The issue is just how much of the gain gets "pushed" into the 15% tax bracket from the 0% tax bracket.
Also, were you married when you purchased the condo? whether you divorced or your spouse passed can impact the cost basis and therefore, the capital gains. if either occurred, can you explain more?
