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2011 return. You do not have to file form 5405. Instead,

claimed the credit on a joint return. If you did not dispose

enter the repayment on your 2011 Form 1040, line 59b,

of the home and the home did not cease to be your main

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

home, do not check any box on line 13. If you did dispose

of the home or it ceased to be your main home, check

Example 3. You claimed the credit for a home you

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

purchased in 2009. In 2011, you moved out of the home

instructions also apply if you are not filing a joint return

and converted it to rental property. You must check the

with the deceased taxpayer for 2011.)

box on line 13d and complete Part IV to figure the

amount of credit you have to repay with your 2011 return.

Part IV. Repayment of Credit Claimed

Example 4. The facts are the same as in Example 3

for 2008, 2009, or 2010

except that you purchased the home in 2008. You must

check the box on line 13d and complete Part IV. In this

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

case, you must repay the balance of the credit with your

used it as your main home during all of 2011, you must

2011 tax return.

continue repaying the credit with your 2011 tax return.

Lines 13f and 13g—Home destroyed or sold through

You do not have to file Form 5405. Instead, enter the

condemnation or under threat of condemnation. If

repayment on your 2011 Form 1040, line 59b, or Form

your home was destroyed or you sold your home through

1040NR, line 58b, whichever applies.

condemnation or under threat of condemnation to a

If you are required to repay the credit because you

person who is not related to you, the amount of the credit

disposed of a home you purchased in 2008, 2009, or

you have to repay (if any) is limited to the gain on the

2010, or that home ceased to be your main home, you

disposition. Complete Part V to determine whether you

generally must repay the entire credit (or the balance of

have a gain. Check the box on line 13f if you have a gain.

the unpaid credit in the case of a 2008 purchase) with

If you do not have a gain, you do not have to repay

your 2011 tax return. An exception applies if your home

any of the credit. Check the box on line 13g if you do

was destroyed or condemned, or you disposed of the

not have a gain. Then read the instructions below for line

home under threat of condemnation, and you did not

13f or line 13g, whichever applies.

acquire a new main home within 2 years of the event.

Line 13f. If you acquired or plan to acquire a new

(See the instructions for lines 13f and 13g earlier.)

home within 2 years of the event, the following rules

Another exception applies for certain members of the

generally apply.

uniformed services or Foreign Service or employees of

•

For homes purchased in 2008, you continue to repay

the intelligence community (see the instructions for line

the credit over a 15-year period that began with your

12 on page 4).

2010 tax return. Complete Part IV to figure your

If you and your spouse claimed the credit on a

installment payment for 2011 if the event was not a sale

joint return, each of you must file a separate Form

TIP

to a related person.

•

5405 to notify the IRS that you disposed of the

For homes purchased in 2009 or a later year, you do

home or ceased to use it as your main home.

not have to repay the credit if you acquire a new main

home within 2 years of the event and you own and use it

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

as your main home during the remainder of the 36-month

2008, 2009, or 2010 but your spouse died, enter one-half

period.

of the credit you claimed. The remaining half (that is, your

spouse’s half) does not have to be repaid. If you and your

If you do not acquire a new home within the 2-year

spouse claimed the credit and the home was later

period, the following rules generally apply.

•

transferred to you by your spouse (or ex-spouse as part

If you purchased the home in 2008 and the event

of a divorce settlement), enter the total credit claimed by

occurred in 2009, you generally must repay the balance

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

of the credit in full with your 2011 return. You do not have

to file Form 5405. Instead, enter the repayment on your

Enter the credit you claimed for a home purchased in

2011 Form 1040, line 59b, or Form 1040NR, line 58b,

2008 that was destroyed or that you sold through

whichever applies.

condemnation or under threat of condemnation. Also

•

If you purchased the home in 2008 and the event

enter the credit you claimed for a home purchased in

occurred after 2009, your annual repayment requirement

2009 that was destroyed or that you sold through

continues until the year in which the 2-year period ends.

condemnation or under threat of condemnation in 2009 if

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

you did not acquire a new home within 2 years of the

ends, you must include all remaining installments as

event.

additional tax.

Line 16. If you checked the box on line 13f and the

•

If you purchased the home in 2009 (or a later year),

event was not a sale to a related person, go to line 17.

you must generally include the credit as additional tax on

If you checked the box on line 13f or 13g and the

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

event was a sale to a related person, skip line 17 and go

ends. For example, if the 2-year period ended in 2011,

to line 18.

complete Part IV to figure the amount you have to repay

with your 2011 return.

Item 9 under Who Cannot Claim the Credit on page 2

Line 13g. If you do not have a gain, you do not have to

explains whether the buyer is related to you.

repay any of the credit, unless you sold your home under

Line 17. If any of the following conditions apply, enter

threat of condemnation to someone who is related to you.

on line 17 the gain from line 25.

If the buyer is related to you, the rules explained above

•

You checked the box on line 13a.

for line 13f apply, except that you must repay the entire

•

You checked the box on line 13f, you purchased your

amount of the credit you claimed if you did not acquire a

home in 2008, and the event was not a sale to a related

new home within the 2-year period. This is true even if

person. Item 9 under Who Cannot Claim the Credit on

you had a loss on the sale or you had a gain that is less

page 2 explains whether the buyer is related to you.

than the credit.

•

You checked the box on line 13f, you purchased your

Line 13h. Do not check this box if you are filing a joint

home in 2009, the event occurred in 2009, and the event

return for 2011 with the deceased taxpayer and you

was not a sale to a related person. Item 9 under Who

-5-

Instructions for Form 5405 (Rev. 12-2011)

Instructions For Form 5405 - First-Time Homebuyer Credit And Repayment Of The Credit - 2011 Page 5

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