Instructions For Form 5405 - (Rev. March 2011)
ADVERTISEMENT
1
2
3
4
5
6Instructions for Form 5405
Department of the Treasury
Internal Revenue Service
(Rev. March 2011)
First-Time Homebuyer Credit and Repayment of the Credit
For use with Form 5405 (Rev. December 2010)
Repaying the Credit (for Purchases After 2008) on
Section references are to the Internal Revenue Code unless
otherwise noted.
page 3.
General Instructions
This revision of Form 5405 can be used to claim the
credit only in the following situations.
•
What’s New
You are claiming the credit on your 2009 original or
amended return for a home you purchased in 2010.
•
Clarification of repayment rules. This revision clarifies
You are claiming the credit on your 2010 original or
the rules for repaying the credit when a home is
amended return for a home you purchased in 2010 (or in
destroyed or sold through condemnation or under threat
2011 if you or your spouse if married are, or were, a
of condemnation. The rules have been clarified as
member of the uniformed services or Foreign Service or
follows.
an employee of the intelligence community who meets
•
A destroyed home is subject to the same repayment
the requirements explained under Line D on page 3).
rules that apply to a sale through condemnation or under
Note. For purchases before January 1, 2010, you must
threat of condemnation.
•
use an earlier version of Form 5405.
If you check the box on line 13f for a home purchased
in 2008 and the event was not a sale to a related person,
Also use this revision of Form 5405 to do the following:
the annual repayment is 1/15 of the smaller of (i) the
•
Notify the IRS that the home for which you claimed the
amount on line 14 or (ii) the amount on line 15. For
credit was disposed of or ceased to be your main home
details, see the instructions for line 16b, later.
in 2010. Complete Part III and, if applicable, Part IV.
•
Repayment of the credit. If you:
Figure the amount of the credit you must repay with
•
Claimed the first-time homebuyer credit for a home you
your 2010 tax return. Complete Part IV.
purchased in 2008, and
•
Owned and used the home as your main home during
Who Can Claim the Credit
all of 2010,
In general, you can claim the credit if you are a first-time
you must begin repaying the credit with your 2010 tax
homebuyer or a long-time resident of the same main
return. You repay the credit over a period of 15 years.
home (defined next).
Complete only Part IV. See the instructions for line 16b
on page 6.
First-time homebuyer. You are considered a first-time
homebuyer if you meet all of the following requirements.
If you disposed of the home or the home ceased to be
your main home in 2010, you generally must repay the
1. You purchased your main home located in the
entire credit with your 2010 tax return. Complete Part III
United States:
and, if applicable, Part IV.
a. After December 31, 2009, and before May 1, 2010,
or
You cannot file Form 1040 electronically if you
b. After April 30, 2010, and before October 1, 2010,
!
claim the credit.
and you entered into a binding contract before May 1,
CAUTION
2010, to purchase the home before July 1, 2010.
Effect of credit on federal programs and federally
2. You (and your spouse if married) did not own any
assisted programs. Any refund you receive as a result
other main home during the 3-year period ending on the
of taking the first-time homebuyer credit will not be taken
date of purchase.
into account as income, and will not be taken into
3. You do not meet any of the conditions listed under
account as resources for 12 months from the date you
Who Cannot Claim the Credit on page 2.
receive it for purposes of determining if you (or anyone
else) are eligible for benefits or assistance (or the amount
Long-time resident of the same main home. You are
or extent of benefits or assistance) under any federal
considered a long-time resident of the same main home if
program or federally assisted program. This rule applies
you meet all of the following requirements.
to refunds received after 2009 and before 2013.
1. You (and your spouse if married) previously owned
and used the same main home as your main home for
More information. For more information about the
any 5-consecutive-year period during the 8-year period
latest developments on Form 5405 and its instructions,
ending on the date you purchased your new main home.
go to
2. You purchased your new main home located in the
Purpose of Form
United States:
a. After December 31, 2009, and before May 1, 2010,
Use Form 5405 to claim the first-time homebuyer credit
or
(including the reduced credit for a qualified long-time
b. After April 30, 2010, and before October 1, 2010,
resident of the same main home). The credit may give
and you entered into a binding contract before May 1,
you a refund even if you do not owe any tax. You
2010, to purchase the home before July 1, 2010.
generally must repay the credit if, during the 36-month
period beginning on the purchase date, you dispose of
3. You do not meet any of the conditions listed under
the home or it ceases to be your main home. See
Who Cannot Claim the Credit on page 2.
Cat. No. 54378F
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial