Scenario:

home is primary residence for 36 years
69 years old and spouse 62 years old
documented home base cost $200k
married
professional home appraised at $250k
selling home to daughter for $235k


Questions:

1-Do we have to purchase another home with the home sale proceeds for the capital gains benefit, or can we invest some or all of the money and still have the capital gains benefit?

2-Will the capital gains tax be zero?