Instructions For Form 5405 (Rev. July 2010) (Page 3 of 4) in pdf

For the definition of a related person or a person related to

Specific Instructions

your spouse, see item 9 or 10 on page 2 under Who Cannot

Claim the Credit.

Part I. General Information

Line F. Check the box if you are making one of the following

choices.

•

Line B. Enter the date you purchased the home (or the date

You are choosing to claim the credit on your 2008 original or

you first occupied it if you constructed your main home).

amended return for a main home purchased in 2009.

•

You are choosing to claim the credit on your 2009 original or

Line C. See What To Attach to Your Return on page 2.

amended return for a main home purchased in 2010.

Line D. You have additional time to purchase a home if you

(or your spouse if married):

Part II. Credit

1. Are a member of the uniformed services or Foreign

Line 1. The purchase price is the adjusted basis of your home

Service or an employee of the intelligence community (defined

on the date you purchased it. This includes certain settlement

below), and

or closing costs (such as legal fees and recording fees) and

2. Are on qualified official extended duty (defined on this

your down payment and debt to purchase the home (such as a

page) outside the United States for at least 90 days during the

first or second mortgage or notes you gave the seller in

period beginning after December 31, 2008, and ending before

payment for the home). If you build, or contract to build, a new

May 1, 2010.

home, your purchase price includes costs of construction. For

If you meet both of these conditions, you do not have to

more information about adjusted basis, see Pub. 551, Basis of

purchase your home during the time periods listed on page 1 in

Assets.

item 1, under First-time homebuyer, and in item 2, under

If you purchase a home with a detached garage or other

Long-time resident of the same main home. Instead, you can

outbuilding that you use solely for business purposes, but you

qualify for the credit if you purchase your main home:

use the house solely as a personal residence, you must

1. Before May 1, 2011, or

allocate the purchase price between the house and the garage

2. After April 30, 2011, and before July 1, 2011, and you

or outbuilding. Enter on line 1 the purchase price allocated to

enter into a binding contract before May 1, 2011, to purchase

the house.

the property before July 1, 2011.

Line 3. See Who Can Claim the Credit on page 1 to find out if

Uniformed services. The uniformed services are:

you can claim the credit as a first-time homebuyer or a

•

The Armed Forces (the Army, Navy, Air Force, Marine Corps,

long-time resident.

and Coast Guard),

Line 4. If two or more unmarried individuals buy a main home,

•

The commissioned corps of the National Oceanic and

they can allocate the credit among the individual owners using

Atmospheric Administration, and

any reasonable method. If married individuals buy a main home

•

The commissioned corps of the Public Health Service.

and do not claim the credit on a joint return, they can also

Foreign Service member. For purposes of the credit, you

allocate the credit between them using any reasonable method.

are a member of the Foreign Service if you are any of the

A reasonable method is any method that does not allocate all or

following.

a part of the credit to a co-owner who is not eligible to claim that

•

A Chief of mission.

part of the credit.

•

An Ambassador at large.

For first-time homebuyers, the total amount allocated cannot

•

A member of the Senior Foreign Service.

exceed the smaller of $8,000 or 10% of the purchase price. For

•

A Foreign Service officer.

long-time residents, the total amount allocated cannot exceed

•

Part of the Foreign Service personnel.

the smaller of $6,500 or 10% of the purchase price. For married

Employee of the intelligence community. For purposes

taxpayers filing separate returns, the amount of the credit

of the credit, you are an employee of the intelligence community

allocated to each spouse cannot exceed the smaller of (a) the

if you are an employee of any of the following.

amount on line 3 or (b) the excess of line 2 over the amount

•

The Office of the Director of National Intelligence.

allocated to the other spouse on the other spouse’s Form 5405,

•

The Central Intelligence Agency.

line 4.

•

The National Security Agency.

Line 5. Your modified adjusted gross income is the amount

•

The Defense Intelligence Agency.

from Form 1040, line 38, increased by the total of any:

•

The National Geospatial-Intelligence Agency.

•

Exclusion of income from Puerto Rico, and

•

The National Reconnaissance Office and any other office

•

Amount from Form 2555, lines 45 and 50; Form 2555-EZ,

within the Department of Defense for the collection of

line 18; and Form 4563, line 15.

specialized national intelligence through reconnaissance

programs.

Part III. Disposition or Change of Main

•

Any of the intelligence elements of the Army, the Navy, the

Air Force, the Marine Corps, the Federal Bureau of

Home for Which the Credit Was Claimed

Investigation, the Department of the Treasury, the Department

Complete Part III if you claimed the first-time homebuyer credit

of Energy, and the Coast Guard.

on your original or amended 2008 return and you disposed of

•

The Bureau of Intelligence and Research of the Department

the home or it ceased to be your main home in 2009. This

of State.

includes situations where:

•

Any of the elements of the Department of Homeland Security

•

You sold the home,

concerned with the analyses of foreign intelligence information.

•

You converted the entire home to business or rental property,

Qualified official extended duty. You are on qualified

•

You abandoned the home,

official extended duty while:

•

The home was destroyed, condemned, or disposed of under

•

Serving at a duty station that is at least 50 miles from your

threat of condemnation,

main home, or

•

The lender foreclosed on the mortgage, or

•

Living in Government quarters under Government orders.

•

The taxpayer who claimed the credit died in 2009.

Line E. Check the “Yes” box if:

Also complete Part III if you are claiming the credit on your

•

You purchased the home from a related person, or

2009 return and line 12, 13f, 13g, or 13h applies.

•

You purchased the home after November 6, 2009, from a

Line 12. Check the box if you (or your spouse if married):

person related to your spouse.

•

Are a member of the uniformed services or Foreign Service

If you do not meet either of the above conditions, check the

or an employee of the intelligence community (defined on page

“No” box.

3), and

-3-

Instructions for Form 5405 (Rev. 07 2010)

Instructions For Form 5405 (Rev. July 2010) Page 3

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