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Otherwise, check the “No” box.

and you disposed of the home or it ceased to be your

main home in 2011. This includes situations where:

For the definition of a related person or a person

•

You sold the home (including through foreclosure),

related to your spouse, see item 9 or 10 on page 2 under

•

You converted the entire home to business or rental

Who Cannot Claim the Credit.

property,

•

Line F. Check the box if you are choosing to claim the

You abandoned the home (except in connection with a

credit on your 2010 original or amended return for a main

sale or foreclosure),

•

home purchased in 2011.

The home was destroyed, condemned, or disposed of

under threat of condemnation, or

Part II. Credit

•

The taxpayer who claimed the credit died in 2011.

Also complete Part III if you are claiming the credit on

Line 1. The purchase price is the adjusted basis of your

your 2011 return and line 12, 13f, 13g, or 13h applies.

home on the date you purchased it. This includes certain

Sales (including through foreclosure). In the case of

settlement or closing costs (such as legal fees and

a sale (including through foreclosure) of your main home,

recording fees) and your down payment and debt to

you must repay the credit with the tax return for the tax

purchase the home (such as a first or second mortgage

year in which the sale is completed. In general, this will

or notes you gave the seller in payment for the home). If

occur when the purchaser (or lender) obtains title to your

you build, or contract to build, a new home, your

home.

purchase price includes costs of construction. For more

Line 11. If your home was destroyed or condemned, or

information about adjusted basis, see Pub. 551, Basis of

you disposed of the home under threat of condemnation,

Assets.

enter the date it was destroyed, condemned, or disposed

If you purchase property with a house that you use as

of under threat of condemnation (or the date it ceased to

your personal residence and a separate structure or unit

be your main home, whichever is earlier).

that you do not use as your residence, you must allocate

Line 12. Check the box if you (or your spouse if

the purchase price between the portion of the property

married):

that you use as your residence and the portion of the

•

Are, or were, a member of the uniformed services or

property with the separate structure or unit. Examples

Foreign Service or an employee of the intelligence

include:

community (defined earlier), and

•

A house that you lived in and a detached garage or

•

Sold the home or the home ceased to be your main

outbuilding that you use solely for business purposes.

home after 2008 because you (or your spouse if married)

•

A duplex with two separate dwelling units and you live

received Government orders to serve on qualified official

in one unit and rent out the other unit.

extended duty (defined below).

Enter on line 1 the purchase price allocated to your

If you (or your spouse if married) meet both of these

residence.

conditions, you (and your spouse if married) do not have

Line 3. See Who Can Claim the Credit on page 1 to find

to repay the credit.

out if you can claim the credit as a first-time homebuyer

Qualified official extended duty. You are on

or a long-time resident.

qualified official extended duty while:

•

Line 4. If two or more unmarried individuals buy a main

Serving at a duty station that is at least 50 miles from

home, they can allocate the credit among the individual

your main home, or

•

owners using any reasonable method. If married

Living in Government quarters under Government

individuals buy a main home and do not claim the credit

orders.

on a joint return, they can also allocate the credit

You are on extended duty when you are called or

between them using any reasonable method. A

ordered to active duty for a period of more than 90 days

reasonable method is any method that does not allocate

or for an indefinite period.

any part of the credit to a co-owner not eligible to claim

Lines 13a, 13b, and 13c. See item 9 under Who

that part.

Cannot Claim the Credit on page 2 for the definition of a

related person. If the person does not meet the definition

For first-time homebuyers, the total amount allocated

of a related person, that person is not related to you.

cannot exceed the smaller of $8,000 or 10% of the

purchase price. For long-time residents, the total amount

If you sold your home to someone who is not related

allocated cannot exceed the smaller of $6,500 or 10% of

to you, complete Part V to figure the gain or (loss) on the

the purchase price. For married taxpayers filing separate

sale.

returns, the amount of the credit allocated to each

Line 13d. See the Tip on page 3 for information about

spouse cannot exceed the smaller of (a) the amount on

converting your entire home to business or rental use.

line 3 or (b) the excess of line 2 over the amount

Do not check this box if you converted only a part of

allocated to the other spouse on the other spouse’s Form

the home to rental or business use and you continue to

5405, line 4.

use the other part as your main home. Do not file form

Line 5. Your modified adjusted gross income is the

5405 for this conversion. If you purchased your home in

amount from Form 1040, line 38, increased by the total of

2008, enter your annual repayment on your 2011 Form

any:

1040, line 59b, or Form 1040NR, line 58b, whichever

•

Exclusion of income from Puerto Rico, and

applies.

•

Amount from Form 2555, lines 45 and 50; Form

Example 1. You claimed the credit for a home you

2555-EZ, line 18; and Form 4563, line 15.

purchased in 2009. In 2011, you converted the basement

of your home for use as a child care business. You

Part III. Disposition or Change in Use

continued to use the rest of your home as your main

of Main Home for Which the Credit

home in 2011. You do not have to repay any of the credit

with your 2011 return or file Form 5405.

Was Claimed

Example 2. The facts are the same as in Example 1,

Complete Part III if you claimed the first-time homebuyer

except that you purchased the home in 2008. You are

credit on your original or amended 2008 or later return

required to repay at least 1/15 of the credit with your

-4-

Instructions for Form 5405 (Rev. 12-2011)

Instructions For Form 5405 - First-Time Homebuyer Credit And Repayment Of The Credit - 2011 Page 4

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