1) What is my cost basis in determining capital gains (if any), as my cash contribution to the property wasn't exactly "on paper"? You were gifted 1/2 of the property so the 1/2 of the other person's basis is now your basis. And did they file a gift tax return and pay any gift tax on the gift ? You also need to have the fair market value as of the date of the gift to properly figure if you have a taxable gain or deductible loss. Seek local professional assistance with the matter.
2) Will the sale affect how I'm taxed on other income? Can it change my tax bracket, etc.? It could possibly change a lot of things on a return including the tax bracket. I highly recommend you seek local professional guidance on how this sale could effect you and get educated in possible alternative ways to reduce the tax liability if possible.
