You don't provide all the information I need to make a complete calculation, but even with saying the earnings/basis is about 40/60 means the 40,000 would be around 16,000 taxable. (but there is a little more to it)
Only the earnings are taxed, not the return of the basis.
The calculation can be found on Pages 45 & 46 of Pub 970 as well on Worksheet 6-3 on page 49.
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