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Your gain is calculated by the purchase price plus improvements and the sale price less costs to sell.
You listed your sale price ($60k) so the difference in that (less the costs you have to sell like commission) and the actual cost of the home plus the amount you spent to make capital improvements would be the amount that is taxable.
If this was your main home for 2 out of the last 5 years you can use the IRC 121 law to exclude gain up to $250,000 if single and up to $500,000 if married filing joint.
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