As you are co-owner of the house - you are eligible to exclude up to $250,000 . You need to own the home and use it as a primary residence for at least two years out of last five before the sale.
Your parents are not eligible to exclude their part of the gain because they do not use it as a primary residence. They would need to report their part of the gain as long term and it would be taxed at reduced rate 5% or 15% depending on their total income.
The gain - $939,000-$785,000-$5000-$40,000-$46,950- $4000=$58,050.
Tax Preparer
Taxes, Immigration, Labor Relations