Instructions For Form 5405 - 2009

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Department of the Treasury
Instructions for Form 5405
Internal Revenue Service
(Rev. December 2009)
First-Time Homebuyer Credit and Repayment of the Credit
ceased to be your main home in 2009 and to figure the amount
Section references are to the Internal Revenue Code unless
of the credit you must repay. Complete Part III and, if
otherwise noted.
applicable, Part IV.
General Instructions
Who Can Claim the Credit
What’s New
In general, you can claim the credit if you are a first-time
The Worker, Homeownership, and Business Assistance Act of
homebuyer or a long-time resident of the same main home
2009 changed the rules for the first-time homebuyer credit. The
(defined below).
changes are summarized below.
First-time homebuyer. You are considered a first-time
1. The time period for purchasing a home has been
homebuyer if you meet all of the following requirements.
extended by 5 months — until April 30, 2010. You can also claim
1. You purchased your main home located in the United
a credit for a home purchased after April 30, 2010, and before
States:
July 1, 2010, if you entered into a binding contract before May
a. After December 31, 2008, and before May 1, 2010, or
1, 2010, to purchase the property before July 1, 2010.
2. Members of the uniformed services or Foreign Service
b. After April 30, 2010, and before July 1, 2010, and you
and employees of the intelligence community who meet certain
entered into a binding contract before May 1, 2010, to purchase
requirements do not have to repay the credit and have an extra
the property before July 1, 2010.
year to purchase a main home. See Repaying the Credit (for
2. You (and your spouse if married) did not own any other
Purchases After 2008) on page 2, the instructions for line D on
main home during the 3-year period ending on the date of
page 3, and the instructions for line 12 on page 4.
purchase.
3. A qualified long-time resident of the same main home is
3. You do not meet any of the conditions listed under Who
treated as a first-time homebuyer and can claim a reduced
Cannot Claim the Credit on page 2.
credit for a new main home purchased after November 6, 2009.
See Who Can Claim the Credit on this page.
Long-time resident of the same main home. You are
4. The modified adjusted gross income (MAGI) limits are
considered a long-time resident of the same main home if you
increased for individuals who purchase homes after November
meet all of the following requirements.
6, 2009. See Amount of the Credit on page 2.
1. You (and your spouse if married) previously owned and
5. You cannot claim the credit for a home purchased after
used the same main home as your main home for any
November 6, 2009, if any of the following apply.
5-consecutive-year period during the 8-year period ending on
a. The purchase price of the home is more than $800,000.
the date you purchased your new main home.
b. You can be claimed as a dependent on another person’s
2. You purchased your new main home located in the
tax return.
United States:
c. You (and your spouse if married) are under age 18 on the
a. After November 6, 2009, and before May 1, 2010, or
date of purchase.
b. After April 30, 2010, and before July 1, 2010, and you
d. You acquire the home from a person related to your
entered into a binding contract before May 1, 2010, to purchase
spouse.
the property before July 1, 2010.
6. The credit for homes purchased in 2009 or later years
3. You do not meet any of the conditions listed under Who
does not have to be repaid over 15 years.
Cannot Claim the Credit on page 2.
7. You may have to attach a copy of certain documentation
to your return. See What To Attach to Your Return on page 2.
Additional year to purchase a home for members of the
uniformed services or Foreign Service and employees of
You cannot file Form 1040 electronically if you attach
the intelligence community. Members of the uniformed
!
Form 5405.
services or Foreign Service and employees of the intelligence
CAUTION
community who are on qualified official extended duty outside
the United States may have an additional year to purchase a
Purpose of Form
home and qualify for the credit. See the instructions for line D
on page 3 to find out how to qualify.
Use Form 5405 to claim the first-time homebuyer credit
(including the reduced credit for a qualified long-time resident of
Note. If you were unmarried when you purchased your home
the same main home). The credit may give you a refund even if
and qualified for the credit, then married someone who does not
you do not owe any tax. You generally must repay the credit if,
qualify for the credit, and are claiming the credit for the year in
during the 36-month period beginning on the purchase date,
which you are married, you can do one of the following.
you dispose of the home or it ceases to be your main home.
You can claim up to an $8,000 credit ($6,500 credit if a
See Repaying the Credit (for Purchases After 2008) on page 2.
long-time resident) on a joint return.
You can claim up to a $4,000 credit ($3,250 credit if a
This revision of Form 5405 can be used to claim the credit
long-time resident) on a married filing separate return and your
only in the following situations.
spouse is not allowed to claim any part of the credit on his or
You are claiming the credit on your 2008 original or amended
her return.
return for a home you purchased in 2009.
You are claiming the credit on your 2009 original or amended
Main home. Your main home is the one you live in most of the
return for a home you purchased in 2009 or 2010.
time. It can be a house, houseboat, mobile home, cooperative
apartment, or condominium.
Also use this revision of Form 5405 to notify the IRS that the
home for which you claimed the credit was disposed of or
Cat. No. 54378F

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