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

the amount on line 15. You pay this amount each year

home in 2008, and you sold it under the threat of

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

condemnation to a person who is not related to you.

b. If (a) above does not apply to you, you must repay

If neither of the above conditions applies, leave line 15

at least 1/15 of the credit (line 14) each year until the

blank.

year in which the 2-year period ends.

c. On the tax return for the year in which the 2-year

Line 16a. Check the box on line 16a if either of the

period ends, you must include all remaining installments

following conditions applies.

•

as additional tax.

You checked the box on line 13a, 13c, or 13d.

•

d. You can choose to repay more than the minimum

You checked the box on line 13g and the event

amount as explained next.

occurred before 2009. (If you meet this condition and you

sold the home under threat of condemnation to a person

Repaying more than the minimum amount. You

who is not related to you, enter the smaller of line 14 or

can choose to repay more than the minimum amount with

line 15. Otherwise, enter the amount from line 14.)

any tax return. If you make this choice for any year, the

Line 16b. Check this box if you purchased the home in

following rules apply.

•

2008 and any of the following conditions apply.

You cannot revoke your choice to pay more than the

minimum amount for that year.

1. You owned your home and used it as your main

•

You must repay at least 1/15 of the original credit with

home during all of 2010. You must repay at least 1/15 of

every tax return during the repayment period until the

the credit you claimed for that home with your 2010

year the credit is paid in full. Your final payment may be

return. You continue to repay 1/15 of the credit with every

less than the required minimum amount.

tax return for the next 14 years (2011 through 2024). But

see Repaying more than the minimum amount on this

Example. You claimed a $7,500 credit for a home

page.

purchased in 2008. You are required to repay at least

$500 of the credit ($7,500 ÷ 15 years = $500) each year

2. You checked the box on line 13f. (Your annual

payment requirement is described in (1) above.)

for 15 years starting with your 2010 tax return. However,

3. You checked the box on line 13g and the event

you choose to repay $3,200 with your 2010 tax return,

occurred after 2008. If you meet this condition, the

you make the required minimum payment of $500 with

following rules apply.

your 2011 tax return, and you choose to repay $3,500

a. If you sold your home under threat of condemnation

with your 2012 tax return. The minimum repayment with

to a person who is not related to you, you must repay at

your 2013 tax return is $300 (the balance of unpaid

least 1/15 of the smaller of (i) the amount on line 14 or (ii)

installments)—not $500.

-6-

Instructions for Form 5405 (Rev. 12-2010)

Draft Instructions For Form 5405 - First-Time Homebuyer Credit And Repayment Of The Credit - 2010 Page 6

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