I sold a home in 2024, proceeds were over $250K. They were split between 2 single people (owned for 2+ years). How do I indicate this to avoid paying capitol gains tax?

If you have lived in the house you plan to sell for more than 2 years in the last 5 years before you sell it, you are eligible for the capital gain exclusion of $250,000 ($500,000 if you file jointly).

If the capital gain is below this threshold, you do not have to report the sale on your tax return, except if you receive a form 1099-S in which case you have to report the sale but the capital gain will be excluded from taxation.

Please read this IRS document for more information.

@QTT1 the "proceeds" have nothing to do with the calculation.

Capital gains is determined by 

1) selling price less

2) selling expenses less

3) original purchase price less

4) capital improvements.

The mortgage balance is not part of the equation.