Has anyone actually been audited on the 2 out of 5 years rule? I'm curious what documentation the IRS actually asks for if they question your primary residence claim?

Based on what you've described, you should be fine with the 2-out-of-5 years rule! The IRS recognizes that people have legitimate reasons for temporary absences from their primary residence. The fact that you maintained your driver's license, mailing address, and continued paying property taxes at this address strongly supports your case that this remained your primary residence throughout those periods. Your RV travel and missionary work sound like classic examples of temporary absences that don't disqualify you from the capital gains exclusion. The key factors working in your favor are: (1) you never owned another property during these absences, (2) you maintained your legal ties to the home, and (3) you had clear intent to return (which you did). I'd recommend keeping good documentation of these periods - any records showing the temporary nature of your RV trip and missionary work, plus all the evidence you mentioned about maintaining this as your legal address. The IRS looks at the totality of circumstances, and yours seem to clearly indicate this home remained your primary residence even during your physical absences.

Just to add another perspective as a green card holder who went through this - don't forget about state tax implications too! Some states have their own foreign asset reporting requirements that are separate from federal forms. I bought a small apartment in Europe a few years ago and while I handled the federal Form 8938 correctly, I almost missed that my state (California) had additional disclosure requirements for foreign investments. Each state is different, so definitely check with your state's tax authority or a tax professional familiar with your specific state's rules. Also, keep really good records of the purchase price, any improvements you make, and the exchange rates on all transaction dates. If you ever sell the property, you'll need all this for calculating capital gains/losses on your US return. The IRS documentation requirements for foreign property transactions are pretty strict.

As someone who recently went through this exact situation as a green card holder, I can confirm that yes, you'll likely need to report the foreign property purchase even if it's just for personal use. The key thing to understand is that the US taxes based on your tax residency status (which includes green card holders), not just where the property is located. Here's what I learned from my experience: If the property value exceeds the Form 8938 thresholds ($50,000 for single filers living in the US), you'll need to report it. Even if it's below that threshold, it's smart to keep detailed documentation of the purchase price, transaction dates, and exchange rates used - you'll thank yourself later if you ever sell or if thresholds change. One practical tip: when you're ready to make the purchase, consider consulting with a tax professional who specializes in expat/green card holder situations before completing the transaction. They can help you structure things properly from the start and avoid any compliance headaches later. The reporting requirements can seem overwhelming at first, but once you understand what applies to your specific situation, it becomes much more manageable. Also, don't forget to factor in any foreign bank accounts you might need to open for the property - those could trigger separate FBAR reporting requirements if they exceed $10,000 at any point during the year.

Quick question for anyone who's done this: Do you have to file Form 3115 with your regular tax return or is it submitted separately? And does it need to be mailed or can it be e-filed?

I went through almost the exact same situation last year - depreciation correction from 39-year to 27.5-year schedule on rental property improvements. The $1,200 fee is definitely steep, but honestly it was worth it for me. What really helped was getting multiple quotes. I ended up finding a CPA who specialized in Form 3115 filings and only charged $850. The key is finding someone who does these regularly - they have templates and processes that make it much more efficient than a generalist who might be starting from scratch. One thing to consider: make sure your current CPA is experienced with 3115s specifically. I initially went with my regular tax preparer who quoted $1,400 and admitted she'd only done "a few" of these forms. Ended up switching to someone who does dozens per year and got better service for less money. Also, don't forget that the professional fee is likely deductible as a tax preparation expense. So your actual out-of-pocket cost is reduced by your marginal tax rate. In my case, the $850 fee only cost me about $640 after tax savings. The refund took about 5 months to arrive, but it was exactly what we calculated. Worth the wait and the professional fee!

I'm sorry for your loss, Mohamed. Handling these administrative details during grief is never easy. For your specialized tilt wheelchair donation, I'd suggest establishing fair market value through a systematic approach that will satisfy IRS requirements: **Research Phase:** - Search eBay's "sold listings" (not current listings) for comparable tilt wheelchairs - Check Facebook Marketplace, Craigslist, and medical equipment resale sites - Focus specifically on tilt/specialty wheelchairs rather than standard models - Screenshot everything with dates for your records **Professional Input:** - Call 2-3 local medical equipment companies or rental facilities - Ask what they typically sell 3-year-old specialized tilt wheelchairs for - Many will provide ballpark estimates over the phone **Documentation:** - Take detailed photos before donation (multiple angles, model numbers, serial numbers) - Create a simple summary of your research methodology and how you determined your final value - Ensure the charity receipt specifically states "specialized tilt wheelchair" with their tax ID **Reasonable Value Range:** For a $5,300 specialized tilt wheelchair that's 3 years old and in good condition, $2,400-$2,900 would likely be defensible. Specialized medical equipment typically depreciates slower than standard equipment due to limited supply and ongoing demand. Don't forget Form 8283 for donations over $500. Keep all documentation in your files - you won't submit it with your return, but you'll need it if ever questioned.

I'm so sorry for your loss, Mohamed. Having recently gone through a similar situation with my late father's medical equipment, I completely understand how overwhelming the tax documentation can feel during an already difficult time. Based on your description of a specialized tilt wheelchair that cost $5,300 three years ago and is in good condition, I'd expect a reasonable fair market value to be in the $2,500-$3,000 range. Specialized medical equipment like tilt wheelchairs typically holds value better than standard equipment due to their specific features and limited availability in the used market. Here's what worked for me when establishing defensible fair market value: **Research Methodology:** - Use eBay's "sold listings" filter to see what similar tilt wheelchairs actually sold for (not just asking prices) - Check multiple platforms: Facebook Marketplace, Craigslist, medical equipment resale sites - Focus specifically on tilt or specialty wheelchairs rather than standard models - Document everything with screenshots and dates **Professional Validation:** - Contact 2-3 local medical equipment dealers or rental companies - Ask what they typically price used tilt wheelchairs at for similar age/condition - Most will give you rough estimates over the phone, which adds professional perspective to your valuation **Documentation Package:** - Take detailed photos from multiple angles before donation - Include close-ups of model numbers, manufacturer labels, and any special features - Get a receipt from the charity that specifically describes it as a "specialized tilt wheelchair" with their tax ID - Create a brief written summary of your research process and how you determined the final value The key is demonstrating that you made a good-faith effort to determine accurate fair market value through thorough research. Keep all this documentation in your files (you don't submit it with your return) and don't forget to complete Form 8283 since your donation will exceed $500. Your approach of looking at comparable sales was exactly right - the wide price variation you found is normal, which is why documenting your methodology becomes so important.

Has anyone tried just calling CK customer service to ask about this? I'm in the same boat (DDD 2/25) and still nothing in my acct. Kinda freaking out tbh 😬

@Amara Nwosu I wouldn't panic just yet! Credit Karma's customer service can be helpful, but they'll likely tell you the same thing - deposits typically process within 24-48 hours of your DDD. Since today is 2/25, you should definitely see it by tomorrow morning. That said, calling them could give you peace of mind and they might be able to see if the deposit is "pending" in their system. Their phone support is usually pretty responsive compared to other online banks. You can also check the Credit Karma app notifications - sometimes they'll send an alert when a large deposit is processing even before it shows in your available balance. If you don't see anything by end of business tomorrow (2/26), then I'd definitely follow up with both Credit Karma and potentially check your IRS transcript to make sure the refund was actually sent to the right account.