If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).
Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)
If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.
Then if their gain on the sale was less than the exclusion amounts the sale does not have to be reported on a tax return.
You know what version of turbo tax I need to use in order to report or include this gain/loss??
If you are going to use the TurboTax online editions then you would need the Premium online edition to report the sale of the home.
https://turbotax.intuit.com/personal-taxes/online/premium/
If you were going to use the TurboTax desktop CD/Download editions, then any of those editions can be used
If Im using turbo tax desktop than any of those edition will hae option to claim sell of condo will be there or any specific. I mean deluxe/premier/home-office which one will allow me?
No, if your parents lived in their condo for 2 of the last 5 years, any gain on the sale up to 500K is excluded from taxes, for a married couple.
You don't even need to report it on their tax return, in that case.
Here's more info about the Home Sale Exclusion for Sale of Primary Home.