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Instructions for Form 5405

Department of the Treasury

Internal Revenue Service

(Rev. December 2011)

First-Time Homebuyer Credit and Repayment of the Credit

resident of the same main home). The credit may give

Section references are to the Internal Revenue Code unless

you a refund even if you do not owe any tax. You

otherwise noted.

generally must repay the credit if, during the 36-month

General Instructions

period beginning on the purchase date, you dispose of

the home or it ceases to be your main home. See

What’s New

Repaying the Credit (for Purchases After 2008) later.

This revision of Form 5405 can be used to claim the

Credit for homes purchased in 2011. For most

credit only in the following situations.

people, the first-time homebuyer credit is not available for

•

You are claiming the credit on your 2010 original or

homes purchased in 2011. However, certain members of

amended return for a home you purchased in 2011.

the uniformed services and Foreign Service and certain

•

You are claiming the credit on your 2011 original or

employees of the intelligence community can claim the

amended return for a home you purchased in 2011.

credit for homes purchased in 2011. See Who Can Claim

the Credit beginning on this page and the instructions for

For purchases before January 1, 2011, you must

line D on page 3.

use an earlier version of Form 5405.

Repayment of the credit. If you are repaying the credit

CAUTION

with your 2011 tax return, you are required to file Form

Also use this revision of Form 5405 to do the following:

5405 only if:

•

Notify the IRS that the home for which you claimed the

•

You disposed of your home or you ceased using the

credit was disposed of or ceased to be your main home

home as your main home in 2011, or

in 2011. Complete Part III and, if applicable, Parts IV and

•

You purchased your home in 2009, it was destroyed or

you sold it through condemnation or under threat of

•

Figure the amount of the credit you must repay with

condemnation in 2009, and you did not purchase a new

your 2011 tax return. Complete Part IV and, if applicable,

home within 2 years of the event.

Part V.

In all other cases, you are not required to file Form

Who Can Claim the Credit

5405. Instead, enter the repayment on Form 1040, line

59b, or Form 1040NR, line 58b, whichever applies. For

In general, you can claim the credit for a home

example, you are not required to file Form 5405 if you are

purchased in 2011 if you are a first-time homebuyer or a

making an installment payment of the credit you claimed

long-time resident of the same main home (defined next).

for a home you purchased in 2008 and you owned it and

First-time homebuyer. You are considered a first-time

used it as your main home during all of 2011.

homebuyer if you meet all of the following requirements.

You cannot file Form 1040 electronically if you

1. You (or your spouse if married) are, or were, a

claim the credit. You must file on paper and

member of the uniformed services or Foreign Service or

attach all required documentation.

an employee of the intelligence community who meets

CAUTION

the requirements explained under Line D on page 3.

Reminders

2. You purchased your main home located in the

United States:

Effect of credit on federal programs and federally

a. After December 31, 2010, and before May 1, 2011,

assisted programs. Any refund you receive as a result

of taking the first-time homebuyer credit cannot be

b. After April 30, 2011, and before July 1, 2011, and

counted as income when determining if you or anyone

you entered into a binding contract before May 1, 2011,

else is eligible for benefits or assistance, or how much

to purchase the home before July 1, 2011.

you or anyone else can receive, under any federal

3. You (and your spouse if married) did not own any

program or under any state or local program financed in

other main home during the 3-year period ending on the

whole or in part with federal funds. These programs

date of purchase.

include Temporary Assistance for Needy Families

4. You do not meet any of the conditions listed under

(TANF), Medicaid, Supplemental Security Income (SSI),

Who Cannot Claim the Credit on page 2.

and Supplemental Nutrition Assistance Program (food

stamps). In addition, when determining eligibility, the

Long-time resident of the same main home. You are

refund cannot be counted as a resource for at least 12

considered a long-time resident of the same main home if

months after you receive it. This rule applies to refunds

you meet all four of the following requirements.

received after 2009 and before 2013. Check with your

1. You (or your spouse if married) are, or were, a

local benefit coordinator to find out if your refund will

member of the uniformed services or Foreign Service or

affect your benefits.

an employee of the intelligence community who meets

Future developments. For the latest information about

the requirements explained under Line D on page 3.

this form, including any developments after these

2. You (and your spouse if married) previously owned

instructions were released, go to

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.

Use Form 5405 to claim the first-time homebuyer credit

3. You purchased your new main home located in the

(including the reduced credit for a qualified long-time

United States:

Nov 30, 2011

Cat. No. 54378F

Instructions For Form 5405 - First-Time Homebuyer Credit And Repayment Of The Credit - 2011

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