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

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Sold the home or the home ceased to be your main home

Instead, you will have to file the 2010 revision of Form 5405

after 2008 because you (or your spouse if married) received

with your 2010 Form 1040.

Government orders to serve on qualified official extended duty

If you are required to repay the credit because you disposed

(defined below).

of a home you purchased in 2008 or that home ceased to be

If you (or your spouse if married) meet both of these conditions,

your main home, you generally must repay the credit with your

you do not have to repay the credit.

2009 tax return. An exception applies if your home was

Qualified official extended duty. You are on qualified

destroyed, condemned, or disposed of under threat of

official extended duty while:

condemnation, and you did not acquire a new main home within

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

2 years of the event. In that case, you repay the credit with the

main home, or

tax return for the year in which the 2-year period ended.

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Living in Government quarters under Government orders.

Another exception applies for certain members of the uniformed

You are on extended duty when you are called or ordered to

services or Foreign Service or employees of the intelligence

active duty for a period of more than 90 days or for an indefinite

community (see the instructions for line 12 beginning on page

period.

3).

Lines 13a, 13b, and 13c. See item 9 under Who Cannot

Line 14. If you claimed the credit on a joint return for 2008 but

Claim the Credit on page 2 for the definition of a related person.

your spouse died, enter one-half of the credit you claimed on

If the person does not meet the definition of a related person,

Form 5405 for 2008. The remaining half (that is, your spouse’s

that person is not related to you.

half) does not have to be repaid. If you and your spouse

claimed the credit for 2008 and the home was later transferred

Line 13d. Do not check this box or file this form if you

to you as part of a divorce settlement, enter the total credit

converted only a part of the home to rental or business use and

claimed for 2008 by both you and your ex-spouse.

you continue to use the other part as your main home. If you

purchased your home in 2008, repayment of the credit over a

Line 15. See Pub. 523 for information on how to figure the

15-year period will begin with your 2010 tax return. If you

gain on the sale of your main home.

purchased your home in 2009, see Repaying the Credit (for

Paperwork Reduction Act Notice. We ask for the information

Purchases After 2008) on page 2 for when you may have to

on this form to carry out the Internal Revenue laws of the United

repay the credit.

States. You are required to give us the information. We need it

Line 13f. If you purchased the home in 2009 (or a later year),

to ensure that you are complying with these laws and to allow

you do not have to repay the credit if you acquire a new main

us to figure and collect the right amount of tax.

home within 2 years of the event and you own and use it as

You are not required to provide the information requested on

your main home during the remainder of the 36-month period.

a form that is subject to the Paperwork Reduction Act unless

Line 13g. If you do not acquire a new home within the 2-year

the form displays a valid OMB control number. Books or

period, the following rules apply.

records relating to a form or its instructions must be retained as

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If you purchased the home in 2008, you must include all

long as their contents may become material in the

remaining installments as additional tax on the tax return for the

administration of any Internal Revenue law. Generally, tax

year in which the 2-year period ends.

returns and return information are confidential, as required by

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If you purchased the home in 2009 (or a later year), you must

section 6103.

include the credit as additional tax on the tax return for the year

The average time and expenses required to complete and

in which the 2-year period ends.

file this form will vary depending on individual circumstances.

Line 13h. Do not check this box if you are filing a joint return

For the estimated averages, see the instructions for your

for 2009 with the deceased taxpayer and you claimed the credit

income tax return. If you have comments concerning the

on a joint return. If you did not dispose of the home and the

accuracy of these time estimates or suggestions for making this

home did not cease to be your main home, do not check any

form simpler, we would be happy to hear from you. See the

box on line 13. If you did dispose of the home or it ceased to be

instructions for the tax return with which this form is filed.

your main home, check the appropriate box on lines 13a

through 13g. (These instructions also apply if you are not filing

a joint return with the deceased taxpayer for 2009.)

Part IV. Repayment of Credit Claimed for

2008

If you purchased the home in 2008 and you owned it

and used it as your main home during all of 2009 and

2010, repayment of the credit over a 15-year period will

CAUTION

begin with your 2010 return. Do not file Form 5405 for 2009.

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Instructions for Form 5405 (Rev. 07 2010)

Instructions For Form 5405 (Rev. July 2010) Page 4

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