$250K Home sales tax exemption

[Jason Shim]

My wife and I are thinking of selling our primary residence in 2-3 years.  we live here for 20 years.  If the market continues the way it is, we are looking at a $1mn gain in 2-3 years.  if we sell today, our gain is well over $500K.   here are my questions

1)  if my brother and her wife move in to our house and we transfer 50% of the title to them, and if me+brother sell the house in 2-3 years, will each couple qualify for $500K exclusion? 

2)  I heard the max exclusion is $500K per house.  if this is true, I plan to sell the house to my brother now and let them sell the house again in 2-3 years.

I have a loss carry forward of $200K from my previous business dealings.  if I sell my house in 2016 and gain $500K, will I have to apply the $200K loss carry forward to offset the $500K first, meaning I will not enjoy the full $500K exclusion?  or can I exclude the $500K first, then apply any further gain/my income towards the loss carry forward?

Thank for the advice