This is the issue I was having when doing my moms taxes. She made $38,000 last year but she sold a rental property for $200,000 in 2023. She acquired this property when my dad passed away in 2012 and the Fair Market Value was only $60,000. So there was a capital gains of $140,000 plus her $38,000 income. She now has owes around $26,000 in taxes. I applied for an extension because two different people from TurboTax told me to enter the sale in two different areas. I am going to take the paperwork to a tax place.
