we don't have a complete picture of your tax situation - examples: depreciation taken on the rental, standard or itemized deductions. selling costs of the rental and possibly other info as well. Therefore, these variables would change the following and it could be significant. The maintenance part of that $40k would likely be an expense while the remodeling portion would add to your tax basis reducing your gain. However, you will also be subject to depreciation recapture on the property, If you have not taken depreciation then run to a tax pro because you must pay taxes on this even if you never took it. based on what you did provide it looks like 85% of your social security would be taxed (taxable about $45K).
depreciation recapture is taxed at the lower of your marginal tax rate or 25%. As a very rough guess about most of the capital gain, excluding recapture, will be taxed at 15%
if you want an idea of what your taxes might be, use the free tax calculators that are available on the web. one is Turbotax Taxcaster.
https://turbotax.intuit.com/lp/ppc/2541?&srqs=null&cid=ppc_msn_nb_stan_all_na_Calculator-CalculatorE...
