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

Homes purchased in 2009 or a later year. Enter the

related person, divide line 14 by 15.0. This is the

smaller of line 16 or line 17 on line 18 if you meet either

minimum amount you must pay with your 2011 return.

of the following conditions.

Enter this amount (or a larger amount if you choose) on

•

You checked the box on line 13a.

line 18. But see Repaying more than the minimum

•

You checked the box on line 13f for an event that

amount below.

occurred in 2009, you did not acquire a new home within

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

2 years of the event, and the disposition was not a sale to

to repay the amount described above with every tax

a related person.

return for the next 13 years (2012 through 2024). But see

(d) next for an exception.

Enter the amount from line 16 on line 18 if you meet

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

either of the following conditions.

•

years of the event, (c) above does not apply. Instead, you

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

•

must include any remaining installments as additional tax

You checked the box on line 13f or 13g for an event

on the tax return for the year in which the 2-year period

that occurred in 2009, you did not acquire a new home

ends.

within 2 years of the event, and the disposition was a

sale to a related person.

Repaying more than the minimum amount. You

Homes purchased in 2008.

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

1. If you checked the box on line 13a, enter the

during the repayment period until the year the credit is

smaller of line 16 or line 17 on line 18.

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

2. If you checked the box on line 13c or line 13d,

minimum amount with any tax return. Your final payment

enter the amount from line 16 on line 18.

may be less than the required minimum amount.

3. If you checked the box on line 13f or 13g, the

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

following rules apply.

purchased in 2008. You are required to repay at least

a. If you checked the box on line 13f for an event that

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

occurred in 2011 and you did not sell the home to a

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

related person, your repayment is limited to the gain. If

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

line 17 is less than line 16, divide line 17 by 14.0.

make the required minimum payment of $500 with your

Otherwise, divide line 14 by 15.0. This is the minimum

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

amount you must pay with your 2011 return. Enter this

your 2012 tax return. The minimum repayment with your

amount (or a larger amount if you choose) on line 18. But

2013 tax return is $300 (the balance of unpaid

see Repaying more than the minimum amount below.

installments)—not $500.

b. If you checked the box on line 13f or 13g for an

event that occurred in 2011 and you sold the home to a

-6-

Instructions for Form 5405 (Rev. 12-2011)

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

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