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Instructions for Form 5405

Department of the Treasury

Internal Revenue Service

(Rev. December 2010)

First-Time Homebuyer Credit and Repayment of the Credit

1. You purchased your main home located in the

Section references are to the Internal Revenue Code unless

otherwise noted.

United States:

General Instructions

a. After December 31, 2009, and before May 1, 2010,

b. After April 30, 2010, and before October 1, 2010,

What’s New

and you entered into a binding contract before May 1,

2010, to purchase the home before July 1, 2010.

Repayment of the credit. If you:

•

Claimed the first-time homebuyer credit for a home you

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

purchased in 2008, and

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

•

Owned and used the home as your main home during

date of purchase.

all of 2010,

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

you must begin repaying the credit with your 2010 tax

Who Cannot Claim the Credit beginning on page 2.

return. You repay the credit over a period of 15 years.

Complete only Part IV. See the instructions for line 16b

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

on page 6.

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

If you disposed of the home or the home ceased to be

you meet all of the following requirements.

your main home in 2010, you generally must repay the

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

entire credit with your 2010 tax return. Complete Part III

and used the same main home as your main home for

and, if applicable, Part IV.

any 5-consecutive-year period during the 8-year period

You cannot file Form 1040 electronically if you

ending on the date you purchased your new main home.

claim the credit.

2. You purchased your new main home located in the

United States:

CAUTION

a. After December 31, 2009, and before May 1, 2010,

Purpose of Form

Use Form 5405 to claim the first-time homebuyer credit

b. After April 30, 2010, and before October 1, 2010,

(including the reduced credit for a qualified long-time

and you entered into a binding contract before May 1,

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

2010, to purchase the home before July 1, 2010.

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

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

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

Who Cannot Claim the Credit on page 2.

period beginning on the purchase date, you dispose of

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

Additional time to purchase a home for members of

Repaying the Credit (for Purchases After 2008) on

the uniformed services or Foreign Service and

page 2.

employees of the intelligence community. Members

This revision of Form 5405 can be used to claim the

of the uniformed services or Foreign Service and

credit only in the following situations.

employees of the intelligence community who are on

•

You are claiming the credit on your 2009 original or

qualified official extended duty outside the United States

amended return for a home you purchased in 2010.

may have additional time to purchase a home and qualify

•

You are claiming the credit on your 2010 original or

for the credit. See the instructions for Line D on page 3 to

amended return for a home you purchased in 2010 (or in

find out if you qualify.

2011 if you or your spouse if married are, or were, are a

member of the uniformed services or Foreign Service or

Note. If you were unmarried when you purchased your

an employee of the intelligence community who meets

home and qualified for the credit, then married someone

the requirements explained under Line D on page 3).

who does not qualify for the credit, and are claiming the

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

credit for the year in which you are married, you can do

•

Notify the IRS that the home for which you claimed the

one of the following.

credit was disposed of or ceased to be your main home

•

You can claim up to an $8,000 credit ($6,500 credit if a

in 2010. Complete Part III.

long-time resident) on a joint return.

•

Figure the amount of the credit you must repay with

•

You can claim up to a $4,000 credit ($3,250 credit if a

your 2010 tax return. Complete Part IV.

long-time resident) on a married filing separate return

and your spouse is not allowed to claim any part of the

Who Can Claim the Credit

credit on his or her return.

In general, you can claim the credit if you are a first-time

homebuyer or a long-time resident of the same main

Main home. Your main home is the one you live in most

home (defined below).

of the time. It can be a house, houseboat, mobile home,

cooperative apartment, or condominium.

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

homebuyer if you meet all of the following requirements.

Cat. No. 54378F

Draft Instructions For Form 5405 - First-Time Homebuyer Credit And Repayment Of The Credit - 2010

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