Instructions For Form 5405 (Rev. July 2010)
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4Instructions for Form 5405
Department of the Treasury
Internal Revenue Service
(Rev. July 2010)
First-Time Homebuyer Credit and Repayment of the Credit
Section references are to the Internal Revenue Code unless
2. You purchased your new main home located in the
United States:
otherwise noted.
General Instructions
a. After November 6, 2009, and before May 1, 2010, or
b. After April 30, 2010, and before October 1, 2010, and
you entered into a binding contract before May 1, 2010, to
What’s New
purchase the property before July 1, 2010.
3. You do not meet any of the conditions listed under Who
The Homebuyer Assistance and Improvement Act of 2010 has
Cannot Claim the Credit below.
extended the purchase date for homebuyers who entered into a
binding contract before May 1, 2010, to purchase a home
Additional time to purchase a home for members of the
before July 1, 2010. Under the Act, these homebuyers may
uniformed services or Foreign Service and employees of
claim the credit if they purchase the home before October 1,
the intelligence community. Members of the uniformed
2010. See Who Can Claim the Credit on this page.
services or Foreign Service and employees of the intelligence
community who are on qualified official extended duty outside
You cannot file Form 1040 electronically if you attach
!
the United States may have additional time to purchase a home
Form 5405.
and qualify for the credit. See the instructions for line D on page
CAUTION
3 to find out how to qualify.
Purpose of Form
Note. If you were unmarried when you purchased your home
Use Form 5405 to claim the first-time homebuyer credit
and qualified for the credit, then married someone who does not
(including the reduced credit for a qualified long-time resident of
qualify for the credit, and are claiming the credit for the year in
the same main home). The credit may give you a refund even if
which you are married, you can do one of the following.
•
you do not owe any tax. You generally must repay the credit if,
You can claim up to an $8,000 credit ($6,500 credit if a
during the 36-month period beginning on the purchase date,
long-time resident) on a joint return.
•
you dispose of the home or it ceases to be your main home.
You can claim up to a $4,000 credit ($3,250 credit if a
See Repaying the Credit (for Purchases After 2008) on page 2.
long-time resident) on a married filing separate return and your
spouse is not allowed to claim any part of the credit on his or
This revision of Form 5405 can be used to claim the credit
her return.
only in the following situations.
•
You are claiming the credit on your 2008 original or amended
Main home. Your main home is the one you live in most of the
return for a home you purchased in 2009.
time. It can be a house, houseboat, mobile home, cooperative
•
You are claiming the credit on your 2009 original or amended
apartment, or condominium.
return for a home you purchased in 2009 or 2010.
Who Cannot Claim the Credit
Also use this revision of Form 5405 to notify the IRS that the
home for which you claimed the credit was disposed of or
You cannot claim the credit if any of the following apply.
ceased to be your main home in 2009 and to figure the amount
1. The purchase price of the home (defined in the
of the credit you must repay. Complete Part III and, if
instructions for line 1 on page 3) is more than $800,000. This
applicable, Part IV.
rule applies to homes purchased after November 6, 2009.
2. Your modified adjusted gross income is:
Who Can Claim the Credit
a. $95,000 or more ($170,000 or more if married filing
In general, you can claim the credit if you are a first-time
jointly) and you purchased your home before November 7,
homebuyer or a long-time resident of the same main home
2009, or
(defined below).
b. $145,000 or more ($245,000 or more if married filing
jointly) and you purchased your home after November 6, 2009.
First-time homebuyer. You are considered a first-time
See the instructions for line 5 on page 3.
homebuyer if you meet all of the following requirements.
3. You cannot claim the credit for any year for which you
1. You purchased your main home located in the United
can be claimed as a dependent on another person’s tax return.
States:
This rule applies to homes purchased after November 6, 2009.
a. After December 31, 2008, and before May 1, 2010, or
4. You (and your spouse if married) are under age 18 on the
b. After April 30, 2010, and before October 1, 2010, and
date of purchase. This rule applies to homes purchased after
you entered into a binding contract before May 1, 2010, to
November 6, 2009.
purchase the property before July 1, 2010.
5. You are a nonresident alien.
2. You (and your spouse if married) did not own any other
6. Your home is located outside the United States.
main home during the 3-year period ending on the date of
7. You sell the home, or it ceases to be your main home,
purchase.
before the end of the year in which you purchased it. This rule
3. You do not meet any of the conditions listed under Who
does not apply if you are a member of the uniformed services or
Cannot Claim the Credit on this page.
Foreign Service, or an employee of the intelligence community
on qualified official extended duty as defined in the instructions
Long-time resident of the same main home. You are
for line 12 on page 4 and you sell the home, or it ceases to be
considered a long-time resident of the same main home if you
your main home, after 2008. You can claim the credit on the
meet all of the following requirements.
return for the year of purchase or choose to claim it on your
1. You (and your spouse if married) previously owned and
return for the year before the year in which you purchased the
used the same main home as your main home for any
home if you otherwise qualify for the credit.
5-consecutive-year period during the 8-year period ending on
8. You acquired the home by gift or inheritance.
the date you purchased your new main home.
Cat. No. 54378F
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