Hi. My name is ***** ***** I will be happy to help you.
If the house has been your primary residence for at least 2 out of 5 years prior the sale, which it looks like it was, you can exclude up to 250K of capital gains if your filing
status is single. Assuming you did some improvements over the years plus you expenses of sale including RE commission you will still be looking at about 850k of capital gains.
Your capital gains will be difference between selling price and your basis (purchase price, major improvements, expenses of sale), minus the exclusion: 1.5m - 400K (assuming $100 for improvements and expenses of sale) - 250K = 850K
Now don't shoot the messenger here but there's no legal way to avoid paying capital gains on the difference if you sell it. Unfortunately this will put you into the highest tax bracket with 3.8% of additional Medicare
tax. The house would have to pass to your beneficiaries
(eligible for step-up basis) to bypass capital gains.
I know that's not the answer you were hoping for but if there were any way to legally avoid paying capital gains I would be very happy to tell you that. Let me know if you have any questions.