If this is your primary residence, you may qualify to exclude the gain. If you qualify, you do not need to report the sale of your home on your tax return and it won't count towards your income. Is the property tax credit a state tax credit? If so, what state are you in? You can deduct property taxes paid in 2017 for the period you owned the home.
If this home is a rental or investment property, the profit on the sale is included in your income.
The IRS has a provision that
can help homeowners avoid capital gains on the sale of their primary
residence.
To qualify, you must have
owned your home and used it as your main residence for at least two years in
the five-year period before you sell it. You also must not have excluded
another home from capital gains in the two-year period before the home sale. If
you meet those rules, you can exclude up to $250,000 in gains from a home sale
if you’re single and up to $500,000 if you’re married filing jointly.
