What are the rules in paying no capitol gains tax for income below 41,675?

[Willie Holdman]

In 2022 I sold my home I lived in for over 2 years. I used half the home for business. I took the 250,000 deduction, and used the remaining profits on the home to do a 1031 exchange. I overlooked that I still owed a mortgage on the home that was paid off. I believe it was 360,000. For some reason it never registered that I would be required to pay capitol gains tax on the debt outstanding on the home that was paid off. When I noticed this was when on my tax return it says I owe a substantial amount of capitol gains to the feds and the state. Huge blow! But upon researching, it seems if your income was below 41,675 you don't have to pay capitol gains tax https://www.irs.gov/taxtopics/tc409 What are the stipulations?

[Michael Plaks]

@Willie Holdman

Here is an explanation of the 0% capital gain rate which - sorry - won't apply to you the way you think it would.   
https://www.biggerpockets.com/forums/51/topics/900633-how-0-...

As to capital gains in general, mortgage is not part of any capital gain calculation.