IRS Form 5405: First-Time Homebuyer Credit Repayment
This form is required if you need to repay the First-Time Homebuyer Credit from 2008-2010.
Understanding Form 5405
Form 5405 is used to calculate and report any repayment of the First-Time Homebuyer Credit you previously claimed.
Key Situations Requiring Repayment:
- You sold your home or it ceased to be your main residence
- You claimed the credit in 2008 (must be repaid over 15 years)
- You claimed the credit in 2009-2010 and sold within 36 months
- Your home was destroyed or condemned
Repayment Requirements
For 2008 Credits:
- Must repay 1/15th of credit each year for 15 years
- Continues even if you sell the home
- Report on Line 1 of Form 5405
For 2009-2010 Credits:
- Only repay if you sell within 36 months
- Full repayment required in year of sale
- Report on Line 3 of Form 5405
Required Documentation
- Original home purchase documents
- Records of any previous repayments
- Sale documents if applicable
- Proof of main residence status
Special Circumstances
- Divorce: Responsibility follows home ownership
- Inheritance: Different rules may apply
- Military service: Possible extensions available
How We Can Help
Our real estate tax services include:
- Homebuyer credit repayment calculations
- Documentation review and organization
- IRS correspondence for special situations
- Tax planning for home sales
- Form 5405 preparation and filing
Don't Risk IRS Penalties for Improper Repayment
The rules are complex - get professional guidance.
Call 972-519-0041 for expert assistance with Form 5405.