They made it past the 24 month mark.  The first $250,000 or $500,000 (if married, filing jointly) would be exempt from taxation.  We really shouldn't answer this question but refer them to proper professional.  They may have done massive improvements,etc.  Not for us Realtors to advise on.  

Your CPA will know the answer

Consult with your CPA. 

Exactly what Gary Frimann said - $250K/$500K/2-year rule but, confirm it with the CPA.

Same 250k/500k rule: if you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. 

And as others said: a good CPA who understands property taxes is our best friend in your situation. 

When it comes to capital gains, people need to contact their tax prepare or financial adviser for consultation for their individual situation. 

   Gary Frimann  has the textbook answer.  Please confirm it with a CPA or Tax Attorney.  

Since you do not seem to know this answer, contact a CPA or tax accountant. You could also call the IRS and ask them their opinion on the subject matter.

Anyway the CPA sees it. Make the call!

Depends on what they paid for it and what they sold it for.

that homeowner MUST call a CPA and discuss this financial situation....

Seems like a better question for their accountant.

Ask your tax person.

Consult with a local CPA.

You have a good answer from Gary Frimann.

Refer your clients to the IRS website and to their CPA for professional advice. 

My first thought is going to a professional, as it would never be a question I would (or could) answer.  Their Accountant or CPA would be their go-to-person.

Sorry, but I don't provide tax information or advice. Besides, there is not enough information here to even respond propertly.

You need to give us a complete equation Blue. We need to know the gain. It could be zero or it could be a zillion dollars.

Time to speak with a real estate tax advisor or CPA

It depends on how much of the gain is taxable. I think the first $250K if single or $500K if married is not taxed. BUT Call Your Tax Accountant

A question for your CPA 

Refer them to their CPA or tax attorney. We are not experts on this.

I do not answer questions about capital gains and tax consequences 

Nothing - read up on it.

Good answer from Gary and few others.

I am sure your real estate teacher can help you on this.

Gary Frimann gave you a fine answer!

Yes

Best to talk with your CPA and financial advisors.  Everyone's situation is different and I'm not an accountant and can't give tax advice.

A CPA would have this answer!

They need to see an accountant as everyone's tax liabilites and situations are different.

Things have changed lately so I can not say for sure

Ask your accountant or attorney. Depends on many things.

there isn't enought information for an opinion.  But if asked by a client I would refer them to a CPA or tax attorney.  

Various things could have happened.  If they lived their two years, if they bought another home since and live in it, have they rented it.... SO many unanswered questions.

Can exclude $250,000 ($500,00 if married filing jointly) of Capital Gain if:

if one  owned the home for 2 years during the 5 year period ending on the date of sale.

used the home as principal residence  for 2 years in the last 5 years ending on the date of sale

the individual did not exclude gain from another home during the last 2 years ending on the date of sale.

The purchase of anothe home as no effect.

There isn't enough information to answer.  Did they live in the home they purchased? Did the rent out the home they purchased?   But in the end,..... a CPA is the right person to ask.

Sounds like they’ve met the two yr holding requirement .

Possibly no impact at all but it depends on a number of factors best explained by a tax professional.

Talk to an accountant.