Sale of residence with a Life Estate

[RWG1950]

Customer has been in a nursing home for past two years. His daughter has been handling his affairs & provided me with his tax docs.
Daughter recently told me his house had been sold in Aug of 2025 for $350-K.
The 1099-S shows this Gross amount but it only shows the daughter's name in the Transferor's area.
A copy of the closing statement also shows the daughter as the seller and a life estate payoff (debit) amount of $108-K.
Not quite sure how to handle this. If the dad were the seller he surely would have qualified for the $250-K exemption under 2 of 5.
Has the daughter shot herself in the foot by attempting to avoid Medicaid confiscation or is there a way to make this the dad's sale ?
Thanks for comments.

[New York Enrolled Agent]

Assuming arguendo, this was a sale involving a properly constructed life estate, you actually have two sellers - the Life Tenant and the Remainderman. Both are selling their respective interests.

Can be a bit complicated - There will be a need to use Table S and the section 7520 rates to find the appropriate factors to use for determining the correct numbers. The Life Tenant may use the section 121 exclusion (assuming the conditions are met) on their gain and the Remainderman will have a taxable capital gain.