Married client with 3 kids died Dec 30, 2021 with no will; all property was in client's name.  Attorney created an estate.  Assets include commercial property(restaurant) held for rent; personal residence; and vacant residence.

Client purchased personal residence for 80K in 2006.  Attorney used the assessed value on tax bill as FMV on DOD, $113K.  Sold in Nov 2022 for $140K net.  Family moved into vacant residence.

How do I apply Sec 121 exclusion since the family(beneficiaries) qualify?