She 86 years old and is low income (about $15,000 gross income per year on average). She bought the property about 60 years ago, but has not lived in the property herself in the past 15-20 years and has been renting it. Selling this home has provided at least $200,000 in capitol gains. I was reading low income individuals with long term capitol gains do not have to pay income tax on the gains. However, does she have to include the sale of the property as income for 2016? If so, it will push her in a MUCH higher bracket for that year.