Instructions For Form 5405 Draft - (Rev. December 2011)
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6Instructions for Form 5405
Department of the Treasury
Internal Revenue Service
(Rev. December 2011)
First-Time Homebuyer Credit and Repayment of the Credit
This revision of Form 5405 can be used to claim the
Section references are to the Internal Revenue Code unless
credit only in the following situations.
otherwise noted.
•
You are claiming the credit on your 2010 original or
General Instructions
amended return for a home you purchased in 2011.
•
You are claiming the credit on your 2011 original or
What’s New
amended return for a home you purchased in 2011.
Credit for homes purchased in 2011. For most
For purchases before January 1, 2011, you must
people, the first-time homebuyer credit is not available for
!
use an earlier version of Form 5405.
homes purchased in 2011. However, certain members of
CAUTION
the uniformed services and Foreign Service and certain
Also use this revision of Form 5405 to do the following:
employees of the intelligence community can claim the
•
Notify the IRS that the home for which you claimed the
credit for homes purchased in 2011. SeeWho Can Claim
credit was disposed of or ceased to be your main home
the Credit beginning on this page and the instructions for
in 2011. Complete Part III and, if applicable, Part IV.
line D on page 3.
•
Figure the amount of the credit you must repay with
Repayment of the credit. If you are repaying the credit
your 2011 tax return. Complete Part IV.
with your 2011 tax return, you are required to file Form
5405 only if:
Who Can Claim the Credit
•
You disposed of your home or you ceased using the
In general, you can claim the credit for a home
home as your main home in 2011, or
•
purchased in 2011 if you are a first-time homebuyer or a
You purchased your home in 2009, it was destroyed or
long-time resident of the same main home (defined next).
you sold it through condemnation or under threat of
condemnation in 2009, and you did not purchase a new
First-time homebuyer. You are considered a first-time
home within 2 years of the event.
homebuyer if you meet all of the following requirements.
1. You (or your spouse if married) are, or were, a
In all other cases, you are not required to file Form
member of the uniformed services or Foreign Service or
5405. Instead, enter the repayment on Form 1040, line
an employee of the intelligence community who meets
59b, or Form 1040NR, line 58b, whichever applies. For
the requirements explained under Line D on page 3.
example, you are not required to file Form 5405 if you are
2. You purchased your main home located in the
making an installment payment of the credit you claimed
United States:
for a home you purchased in 2008.
a. After December 31, 2010, and before May 1, 2011,
or
You cannot file Form 1040 electronically if you
!
b. After April 30, 2011, and before July 1, 2011, and
claim the credit.
you entered into a binding contract before May 1, 2011,
CAUTION
to purchase the home before July 1, 2011.
More information. For more information about the
3. You (and your spouse if married) did not own any
latest developments on Form 5405 and its instructions,
other main home during the 3-year period ending on the
go to
date of purchase.
4. You do not meet any of the conditions listed under
Reminder
Who Cannot Claim the Credit on page 2.
Effect of credit on federal programs and federally
assisted programs. Any refund you receive as a result
Long-time resident of the same main home. You are
of taking the first-time homebuyer credit will not be taken
considered a long-time resident of the same main home if
into account as income, and will not be taken into
you meet all of the following requirements.
account as resources for 12 months from the date you
1. You (or your spouse if married) are, or were, a
receive it for purposes of determining if you (or anyone
member of the uniformed services or Foreign Service or
else) are eligible for benefits or assistance (or the amount
an employee of the intelligence community who meets
or extent of benefits or assistance) under any federal
the requirements explained under Line D on page 3.
program or federally assisted program. This rule applies
2. You (and your spouse if married) previously owned
to refunds received after 2009 and before 2013.
and used the same main home as your main home for
any 5-consecutive-year period during the 8-year period
Purpose of Form
ending on the date you purchased your new main home.
3. You purchased your new main home located in the
Use Form 5405 to claim the first-time homebuyer credit
United States:
(including the reduced credit for a qualified long-time
a. After December 31, 2010, and before May 1, 2011,
resident of the same main home). The credit may give
or
you a refund even if you do not owe any tax. You
b. After April 30, 2011, and before July 1, 2011, and
generally must repay the credit if, during the 36-month
you entered into a binding contract before May 1, 2011,
period beginning on the purchase date, you dispose of
to purchase the home before July 1, 2011.
the home or it ceases to be your main home. See
Repaying the Credit (for Purchases After 2008) on
4. You do not meet any of the conditions listed under
page 3.
Who Cannot Claim the Credit on page 2.
Aug 18, 2011
Cat. No. 54378F
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