@Mairof Oh, this is a 22 issue?

As @abctax55 stated, you do have a gain in excess of $600k. But this does not include closing costs. Assuming they meet all qualifications, they can exclude the first $500k.

Im guessing that will leave some liability IRS and CA. Make estimated tax payments to both. I'd personally bypass that form from Ca. BUT..........ask @Just-Lisa-Now- as she is from Cali.