Just be aware that even if you miss the 2-out-of-5 year window, you might still qualify for a partial exclusion! This is especially true if your move was work-related. The IRS allows for partial exclusions if the main reason for selling is: 1) Change in place of employment 2) Health reasons 3) Unforeseen circumstances Since you mentioned moving for work reasons, you might qualify even if you miss the full 2-year window. The partial exclusion is prorated based on how long you actually lived there.

This is such a stressful situation but you're smart to plan ahead! I went through something similar in 2022 and learned the hard way that the IRS doesn't give any wiggle room on that closing date - it's the actual date of sale that matters, not when you list or accept an offer. Given that your window closes in June 2026, I'd honestly recommend listing by March 2026 at the latest to give yourself a solid 3-month buffer. Real estate transactions can drag on forever with inspections, appraisals, financing delays, etc. Also, since you moved for your husband's job opportunity, definitely look into whether you qualify for the partial exclusion that others mentioned. If the job move meets the IRS distance requirements (50+ miles), you could still get some exclusion even if you miss the full 2-year window. Document everything about the job-related move - offer letters, distance between old/new workplace, etc. This could be your safety net if the sale timing doesn't work out perfectly.

Edward, I'm so sorry for the loss of your mother. What a difficult situation to navigate while you're still grieving. I wanted to add one point that I haven't seen mentioned yet - consider getting a written statement from the bank that managed the safe deposit box confirming the date you accessed it and that you were an authorized co-lessee. This can serve as additional documentation showing the legitimate discovery of the funds. Also, when you do make the deposit, ask the bank for a copy of the CTR they file - you're entitled to this, and having it in your records shows complete transparency about the transaction. Some people worry about these reports, but they're actually protective documentation when you have a legitimate source for large cash amounts. The grief and stress of handling an estate is overwhelming enough without worrying about doing something wrong financially. You're clearly trying to handle this properly, and with all the great advice here about using an estate account and proper documentation, you should be able to navigate this successfully. Take care of yourself during this difficult time.

Edward, I'm deeply sorry for your loss. Losing your mother so unexpectedly must be incredibly difficult, and then discovering this substantial amount of cash adds another layer of complexity during an already overwhelming time. You've received outstanding advice from this community, and I want to reinforce the most critical points for your situation: **Handle this as part of formal estate administration** - This cash needs to go through the estate first, not directly into your personal accounts. Open an estate account if you haven't already, and deposit the full $87,000 there initially. **Embrace the reporting, don't avoid it** - The bank will file a Currency Transaction Report for the deposit over $10,000, but this is routine documentation that actually protects you. Bring all your executor paperwork, death certificate, and safe deposit box documentation to show this is a legitimate inheritance discovery. **Document everything thoroughly** - Take photos, keep receipts, maintain a timeline of when and how you discovered the cash. This creates a clear trail showing proper estate administration. **Get professional guidance** - With this amount involved, consulting an estate attorney or tax professional is wise. They can ensure you're meeting all state requirements and help you understand any potential tax implications before making distributions. Your mother clearly wanted to provide for you and your sister. By handling this properly through estate channels, you're honoring her intentions while protecting yourself legally. The community here has shown that these situations, while stressful, can be navigated successfully with transparency and proper procedures. Take care of yourself during this difficult process.

Just a heads up that the "support test" for dependency includes some non-obvious things! When I was figuring this out for my daughter last year, I learned that "support" includes: - Housing costs (fair rental value of the home) - Food - Utilities - Clothing - Medical/dental care - Education - Transportation - Recreation - Personal items So even if you're making decent money since August, your mom might have provided more than half your yearly support when you count tuition, housing through August, health insurance, cell phone plan, etc.

This is such a common situation for new graduates! I went through the exact same thing two years ago when I finished school and started working. One thing that really helped me was creating a simple spreadsheet to track all the support calculations. I made columns for each month and listed out major expenses like tuition, housing, food, insurance, etc. Then I marked whether I paid it or my parents paid it. It was eye-opening to see how much support my parents actually provided in those first 8 months of the year, even though I felt completely independent once I started working. For the green card application, definitely go with the current household size of 2 since you're no longer living there. But for taxes, you'll likely still be a dependent for 2024 unless your August-December income was substantial enough to cover more than half your total yearly expenses. One tip: if you're on your parents' health insurance or car insurance, don't forget to include those monthly premiums in the support calculation. Those add up quickly and often push the total support over the 50% threshold in favor of the parents.

Quick question for everyone - what about cash expenses? Sometimes I pay cash for things like parking when meeting clients or small office supplies when I'm in a hurry. How do you handle documentation for those?

Great thread everyone! As someone who went through an IRS audit last year for my consulting business, I can confirm that having organized documentation makes ALL the difference. The auditor told me upfront that cases with good record-keeping typically resolve much faster. One thing I wish I'd known earlier: the IRS has a "Cohan Rule" that allows reasonable estimates for certain expenses if you can demonstrate a pattern but lost some receipts. However, this should NOT be your primary strategy - it's really a last resort and they're very strict about it. My biggest takeaway from the audit experience: consistency in your documentation system matters more than perfection. Whether you use apps, spreadsheets, or physical files, just stick to ONE system and use it religiously. The auditor was more impressed by my consistent monthly organization than by any fancy software. Also, if you're ever selected for audit, don't panic! Most business audits are correspondence audits (done by mail), not the scary in-person ones you see on TV. As long as you have reasonable documentation for your deductions, the process is much more manageable than people make it out to be.

This is such a comprehensive discussion! As a newcomer to this community, I really appreciate how thoroughly everyone has addressed this concern. I was actually dealing with the same anxiety about my own situation. My partner and I use Apple Pay constantly for our shared expenses - probably around $2800 monthly for rent, utilities, groceries, and other household costs. When I first heard about the $600 reporting rule, I was genuinely worried we'd somehow trigger tax issues or get flagged by the IRS. Reading through all these responses from CPAs, tax preparers, and people who've actually spoken directly with IRS agents has been incredibly reassuring. The consistent message is clear: the IRS is targeting unreported business income, not normal household expense sharing between couples. The key insight that really clicked for me is the distinction between reimbursements and actual income. When my partner sends me $1400 for their half of the rent, that's not $1400 of new income for me - I'm just collecting their portion so I can pay our full rent amount. It's money they already earned and paid taxes on. I'm definitely going to make sure we consistently use the "friends/family" options for our transfers rather than "goods & services," and maybe start keeping better records of what our larger payments are for. But it's such a relief to know that our normal way of managing household finances isn't what these new rules are designed to target. Thanks to everyone who shared their expertise and experiences - this kind of detailed, helpful discussion is exactly what I was hoping to find here!

I'm so glad you asked this question! As a newcomer to this community, I was dealing with the exact same anxiety about my Apple Pay usage with my husband. We easily transfer $2000+ monthly back and forth for rent, groceries, utilities, and other shared expenses, and I was genuinely worried we'd somehow get in trouble with the IRS. Reading through all these expert responses has been incredibly reassuring. The consistent message from CPAs, tax preparers, and people who've actually contacted the IRS directly is crystal clear: these new reporting rules are designed to catch unreported business income, not normal household expense sharing between spouses. What really helped me understand is the distinction between reimbursements vs. actual income. When my husband sends me $900 for groceries I bought for our family, that's not $900 of new income for me - I'm just getting reimbursed for expenses I covered with money I already earned and paid taxes on elsewhere. We're not creating new taxable income; we're just managing our existing household funds. The key takeaways I'm getting are: 1) Use the "friends/family" options rather than "goods & services" when transferring, 2) Keep some basic records of what larger transfers were for, and 3) Don't stress about normal spousal expense sharing because that's not what the IRS is targeting at all. Thanks to everyone for such a thorough and helpful discussion - this is exactly the kind of expert guidance I was hoping to find here as a new member!