What to expect tax wise on this sale?

[Dustin T]

Purchase Price = $126,500
Sell Price = $185,000

Don't think it matters for this, but Debt currently on it = $126,700 (purchased with 103% loan).

Owned for 25 months
I was told an Excise tax in the area of $3500.

Can I use half the cash from this sale as a down payment on the next place and pocket the rest? If I do, how does this change taxes paid..if at all?

thanks,