Instructions For Form 5405 - (Rev. March 2011) (Page 6 of 6) in pdf

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the appropriate box on lines 13a through 13g. (These

You checked the box on line 13g and the event

instructions also apply if you are not filing a joint return

occurred before 2009. (If you meet this condition and you

with the deceased taxpayer for 2010.)

had a gain on the disposition and the disposition was not

a sale to a related person, enter the smaller of line 14 or

Part IV. Repayment of Credit Claimed

line 15. Otherwise, enter the amount from line 14.)

for 2008 or 2009

Line 16b. Check this box if you purchased the home in

2008 and any of the following conditions apply. But do

If you purchased the home in 2008 and you owned it and

not check this box if you checked the box on line 13b.

used it as your main home during all of 2010, you must

1. You owned your home and used it as your main

begin repaying the credit with your 2010 tax return. See

home during all of 2010. You must repay at least 1/15 of

the instructions for line 16b.

the credit you claimed for that home with your 2010

If you are required to repay the credit because you

return. You continue to repay 1/15 of the credit with every

disposed of a home you purchased in 2008 or 2009 or

tax return for the next 14 years (2011 through 2024). But

that home ceased to be your main home, you generally

see Repaying more than the minimum amount below.

must repay the entire credit with your 2010 tax return. An

2. Your home was destroyed or sold through

exception applies if your home was destroyed,

condemnation or under threat of condemnation in 2008

condemned, or disposed of under threat of

(and you checked the box on line 13f) or in 2009 or 2010

condemnation, and you did not acquire a new main home

(and you checked the box on line 13f or 13g). If you meet

within 2 years of the event. (See the instructions for line

either of these conditions, the following rules apply.

13g earlier.) Another exception applies for certain

a. If you did not have a gain on the disposition and the

members of the uniformed services or Foreign Service or

disposition was not a sale to the related person, you do

employees of the intelligence community (see the

not have to repay the credit. (You should leave line 16b

instructions for line 12 on page 4).

blank and check the box on line 13b instead.)

If you and your spouse claimed the credit on a

b. If you had a gain on the disposition and the

joint return, each of you must file a separate Form

TIP

disposition was not a sale to a related person, you must

5405 (1) to repay the credit, which must be

repay at least 1/15 of the smaller of (i) the amount on line

divided equally between both of you, or (2) to notify the

14 or (ii) the amount on line 15 with your 2010 return.

IRS that you disposed of the home or ceased to use it as

c. If the disposition was a sale to a related person,

your main home.

you must repay at least 1/15 of the credit you claimed for

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

that home with your 2010 return.

d. If you do not acquire a new main home within 2

2008 or 2009 but your spouse died, enter one-half of the

years of the event, you must include any remaining

credit you claimed on Form 5405 for 2008 or 2009. The

installments as additional tax on the tax return for the

remaining half (that is, your spouse’s half) does not have

year in which the 2-year period ends.

to be repaid. If you and your spouse claimed the credit

e. You can choose to repay more than the minimum

for 2008 or 2009 and the home was later transferred to

amount as explained next.

you by your spouse or ex-spouse as part of a divorce

f. If you do not repay your credit earlier, you continue

settlement, enter the total credit claimed for 2008 or 2009

to repay the amount described in (b) or (c) above with

by both you and your spouse (or ex-spouse).

every tax return for the next 14 years (2011 through

Enter the credit you claimed for a home purchased in

2024).

2008 that was destroyed or that you sold through

condemnation or under threat of condemnation. If the

Repaying more than the minimum amount. You

buyer is related to you, skip line 15 and go to line 16. If

must repay at least 1/15 of the credit with every tax return

the buyer is not related to you, go to line 15. Item (9)

during the repayment period until the year the credit is

under Who Cannot Claim the Credit on page 2 explains

paid in full. You can choose to repay more than the

whether the buyer is related to you.

minimum amount with any tax return. Your final payment

Line 15. If either of the following conditions applies,

may be less than the required minimum amount.

enter on line 15 the gain from line 7 of the worksheet on

Example. You claimed a $7,500 credit for a home

page 5.

purchased in 2008. You are required to repay at least

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You checked the box on line 13a.

$500 of the credit ($7,500 ÷ 15 years = $500) each year

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You checked the box on line 13f or 13g, you

for 15 years starting with your 2010 tax return. However,

purchased your home in 2008, and the event was not a

you choose to repay $3,200 with your 2010 tax return,

sale to a related person.

you make the required minimum payment of $500 with

If neither of the above conditions applies, leave line 15

your 2011 tax return, and you choose to repay $3,500

blank.

with your 2012 tax return. The minimum repayment with

Line 16a. Check the box on line 16a if either of the

your 2013 tax return is $300 (the balance of unpaid

following conditions applies. But do not check this box if

installments)—not $500.

you checked the box on line 13b.

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You checked the box on line 13a, 13c, or 13d.

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Instructions for Form 5405 (Rev. 3-2011)

Instructions For Form 5405 - (Rev. March 2011) Page 6

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