If you live in the home for 2 out of the past 5 years and move out of state you may be exempt from the tax.  

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.

Everything I'm finding says 27.5 years due to it being rental income but others say 5 years because it's an RV.

I'm talking about tax season! 

The absolute best way to avoid taxes is not earn income.  

I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property?

This is a screenshot from a private Facebook group for tax professionals.

I don't know the answers on taxes, but New Jersey is the densest state in America.

This isn’t/wasn’t a loophole - just tax policy. 

@Tyler Speelman, A 1031 exchange solves the tax issue.