IRS Form 5405 Repayment of the First-Time Homebuyer Credit

What Is IRS Form 5405?

IRS Form 5405, Repayment of the First-Time Homebuyer Credit is a document used to inform the Internal Revenue Service (IRS) that the home you bought and for which you claimed the credit is not your main home anymore. You can calculate the amount you need to repay with your tax return on this form as well. Find more details in the official filing instructions issued by the IRS.

The form - also known as the first-time homebuyer form - was issued by the IRS and last revised in November 2018. An up-to-date fillable Form 5405 is available for download below.

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5405
Repayment of the First-Time
OMB No. 1545-0074
Homebuyer Credit
Form
(Rev. November 2018)
Attachment
Attach to Form 1040, Form 1040NR, or Form 1040X.
Department of the Treasury
58
Sequence No.
Go to www.irs.gov/Form5405 for instructions and the latest information.
Internal Revenue Service
Name shown on return
Your social security number
Part I
Disposition or Change in Use of Main Home for Which the Credit Was Claimed
1
Enter the date you disposed of, or ceased using as your main home, the home for which you claimed the
credit (MM/DD/YYYY) (see instructions) .
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2
If you meet the following conditions, check here .
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I (or my spouse if married) am, or was, a member of the uniformed services or Foreign Service, or an employee of the intelligence
community. I sold the home, or it ceased to be my main home, in connection with Government orders for qualified official
extended duty service. No repayment of the credit is required (see instructions). Stop here.
3
Check the box below that applies to you. See the instructions for the definition of “related person.”
a
I sold (including through foreclosure) the home to a person who isn’t related to me and had a gain on the sale (as figured in Part III
below). Go to Part II below.
b
I sold (including through foreclosure) the home to a person who isn’t related to me and didn’t have a gain on the sale (as figured in
Part III below). No repayment of the credit is required. Stop here.
c
I sold the home to a related person OR I gave the home to someone other than my spouse (or ex-spouse as part of my divorce
settlement). Go to Part II below.
d
I converted the entire home to a rental or business use OR I still own the home but no longer use it as my main home. Go to Part II
below.
e
I transferred the home to my spouse (or ex-spouse as part of my divorce settlement). The full name of my ex-spouse is
The responsibility for repayment of the credit is transferred to your spouse or ex-spouse. Stop here.
f
My home was destroyed, condemned, or sold under threat of condemnation and I had a gain (see instructions).
g
My home was destroyed, condemned, or sold under threat of condemnation and I didn’t have a gain (see instructions).
h
The taxpayer who claimed the credit died in 2018. No repayment of the credit is required of the deceased taxpayer. If you are filing
a joint return for 2018 with the deceased taxpayer, see instructions. Otherwise, stop here.
Part II
Repayment of the Credit
4
Enter the amount of the credit you claimed on Form 5405 for 2008. See instructions if you filed a joint
4
return for 2008 or you checked the box on line 3f or 3g .
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5
5
Enter the amount of the credit you repaid with your tax returns for the years 2010 through 2017 .
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6
Subtract line 5 from line 4. If you checked the box on line 3f or 3g, see instructions. If you checked the
box on line 3a, go to line 7. Otherwise, skip line 7 and go to line 8
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6
7
Enter the gain on the disposition of your main home (from line 15 below)
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7
8
Amount of the credit to be repaid. See instructions
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Next: Enter the amount from line 8 on your 2018 Schedule 4 (Form 1040), line 60b; or Form 1040NR,
line 59b.
Part III
Form 5405 Gain or (Loss) Worksheet
Note: Complete this part only if your home was destroyed or you sold your home to someone who isn’t related to you (including a sale
through condemnation or under threat of condemnation). See Pub. 523, Selling Your Home, for information on what to enter on lines 9,
10, and 12. But if you sold your home through condemnation, see chapter 1 in Pub. 544, Sales and Other Dispositions of Assets, for
information on what to enter on lines 9 and 10.
9
Selling price of home, insurance proceeds, or gross condemnation award .
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9
10
Selling expenses (including commissions, advertising and legal fees, and seller-paid loan charges) or
expenses in getting the condemnation award .
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10
11
11
Subtract line 10 from line 9. This is the amount realized on the sale of the home .
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12
12
Adjusted basis of home sold (see instructions)
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13
Enter the first-time homebuyer credit claimed on Form 5405 minus the amount of the credit you repaid
with your tax returns for the years 2010 through 2017
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13
14
Subtract line 13 from line 12. This is the adjusted basis for purposes of repaying the credit
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14
15
Subtract line 14 from line 11 .
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15
• If line 15 is more than -0-, you have a gain. Check the box on line 3a and complete Part II. However,
check the box on line 3f (instead of the box on line 3a) if your home was destroyed or you sold the home
through condemnation or under threat of condemnation. Then complete Part II if the event occurred in
2016.
• If line 15 is -0- or less, check the box on line 3b. However, if your home was destroyed or you sold the
home through condemnation or under threat of condemnation, check the box on line 3g instead. You
don’t have to repay the credit.
5405
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 11880I
Form
(Rev. 11-2018)
5405
Repayment of the First-Time
OMB No. 1545-0074
Homebuyer Credit
Form
(Rev. November 2018)
Attachment
Attach to Form 1040, Form 1040NR, or Form 1040X.
Department of the Treasury
58
Sequence No.
Go to www.irs.gov/Form5405 for instructions and the latest information.
Internal Revenue Service
Name shown on return
Your social security number
Part I
Disposition or Change in Use of Main Home for Which the Credit Was Claimed
1
Enter the date you disposed of, or ceased using as your main home, the home for which you claimed the
credit (MM/DD/YYYY) (see instructions) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2
If you meet the following conditions, check here .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
I (or my spouse if married) am, or was, a member of the uniformed services or Foreign Service, or an employee of the intelligence
community. I sold the home, or it ceased to be my main home, in connection with Government orders for qualified official
extended duty service. No repayment of the credit is required (see instructions). Stop here.
3
Check the box below that applies to you. See the instructions for the definition of “related person.”
a
I sold (including through foreclosure) the home to a person who isn’t related to me and had a gain on the sale (as figured in Part III
below). Go to Part II below.
b
I sold (including through foreclosure) the home to a person who isn’t related to me and didn’t have a gain on the sale (as figured in
Part III below). No repayment of the credit is required. Stop here.
c
I sold the home to a related person OR I gave the home to someone other than my spouse (or ex-spouse as part of my divorce
settlement). Go to Part II below.
d
I converted the entire home to a rental or business use OR I still own the home but no longer use it as my main home. Go to Part II
below.
e
I transferred the home to my spouse (or ex-spouse as part of my divorce settlement). The full name of my ex-spouse is
The responsibility for repayment of the credit is transferred to your spouse or ex-spouse. Stop here.
f
My home was destroyed, condemned, or sold under threat of condemnation and I had a gain (see instructions).
g
My home was destroyed, condemned, or sold under threat of condemnation and I didn’t have a gain (see instructions).
h
The taxpayer who claimed the credit died in 2018. No repayment of the credit is required of the deceased taxpayer. If you are filing
a joint return for 2018 with the deceased taxpayer, see instructions. Otherwise, stop here.
Part II
Repayment of the Credit
4
Enter the amount of the credit you claimed on Form 5405 for 2008. See instructions if you filed a joint
4
return for 2008 or you checked the box on line 3f or 3g .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5
5
Enter the amount of the credit you repaid with your tax returns for the years 2010 through 2017 .
.
.
6
Subtract line 5 from line 4. If you checked the box on line 3f or 3g, see instructions. If you checked the
box on line 3a, go to line 7. Otherwise, skip line 7 and go to line 8
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Enter the gain on the disposition of your main home (from line 15 below)
.
.
.
.
.
.
.
.
.
.
7
8
Amount of the credit to be repaid. See instructions
8
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Next: Enter the amount from line 8 on your 2018 Schedule 4 (Form 1040), line 60b; or Form 1040NR,
line 59b.
Part III
Form 5405 Gain or (Loss) Worksheet
Note: Complete this part only if your home was destroyed or you sold your home to someone who isn’t related to you (including a sale
through condemnation or under threat of condemnation). See Pub. 523, Selling Your Home, for information on what to enter on lines 9,
10, and 12. But if you sold your home through condemnation, see chapter 1 in Pub. 544, Sales and Other Dispositions of Assets, for
information on what to enter on lines 9 and 10.
9
Selling price of home, insurance proceeds, or gross condemnation award .
.
.
.
.
.
.
.
.
.
9
10
Selling expenses (including commissions, advertising and legal fees, and seller-paid loan charges) or
expenses in getting the condemnation award .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
11
11
Subtract line 10 from line 9. This is the amount realized on the sale of the home .
.
.
.
.
.
.
.
12
12
Adjusted basis of home sold (see instructions)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
Enter the first-time homebuyer credit claimed on Form 5405 minus the amount of the credit you repaid
with your tax returns for the years 2010 through 2017
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
14
Subtract line 13 from line 12. This is the adjusted basis for purposes of repaying the credit
.
.
.
.
14
15
Subtract line 14 from line 11 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
• If line 15 is more than -0-, you have a gain. Check the box on line 3a and complete Part II. However,
check the box on line 3f (instead of the box on line 3a) if your home was destroyed or you sold the home
through condemnation or under threat of condemnation. Then complete Part II if the event occurred in
2016.
• If line 15 is -0- or less, check the box on line 3b. However, if your home was destroyed or you sold the
home through condemnation or under threat of condemnation, check the box on line 3g instead. You
don’t have to repay the credit.
5405
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 11880I
Form
(Rev. 11-2018)

Download IRS Form 5405 Repayment of the First-Time Homebuyer Credit

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IRS Form 5405 Instructions

You are required to fill out and submit this form if you purchased home in 2008 with the IRS homebuyer credit and if:

  • You disposed of it during the tax year;
  • This home is not your primary residence anymore;
  • In all other cases, specify your repayment on Schedule 4 (Form 1040) or Form 1040NR, as applicable. If you claimed the credit on the tax return jointly with your spouse, the IRS considers that each of you is allowed half of the credit for repaying purpose. Each spouse who meets the requirements must complete a separate IRS 5405.

The repayment rule has several exceptions:

  • If you had to sell your home to anyone who is not related to you due to condemnation or a condemnation threat and you do not obtain a new home within two years, the repayment you owe is limited to the gain on your disposition. The gain can be figured out in Part III of this form. If the credit amount is higher than the gain you receive, you do not have to repay it. The same applies if your form was destroyed;
  • If you hand over the home to your spouse or ex-spouse, the receiving spouse becomes responsible for repaying the credit;
  • If the individual who claimed the credit died, the repayment of the remaining amount is not required. However, if the spouses claimed the credit on the joint return, the surviving individual must repay his or her part of the credit.

Submit the completed form along with your tax return when applying for tax deductions.

How to Complete IRS Form 5405?

IRS 5405 is a one-page document divided into three parts. Most lines you need to fill out are self-explanatory. Read through the step-by-step guide below before filing:

  1. Enter only your name and Social Security number on the top of the form, even if you claimed this credit on the joint return;
  2. Part I. Disposition or Change in Use of Main Home for Which the Credit Was Claimed. Fill out this part if you claimed the first-time homebuyer credit, and this home is not your main residence anymore, including the situations when you sold the home, abandoned it, converted it to business or rental property, your home was destroyed or condemned, or the individual who claimed the credit died;
  3. Line 2. If you or your spouse are or were an employee of the intelligence community, or a member of the Foreign Service or uniformed services and must serve on qualified official extended duty due to Government orders, you do not have to repay the credit. Check this line, and skip the rest of the form;
  4. Part II. Repayment of the Credit. Use this part to determine the amount you have to repay. Do not fill out this part if any of the abovementioned exceptions applies to you;
  5. Part III. Form 5405 Gain or (Loss) Worksheet. Fill out this part to calculate your gain or loss if your home was destroyed or if you sold it to someone not related to you.

The term "not related" includes not just your spouse, ancestors, or lineal descendants, but also a corporation or partnership in which you own more than 50% in value of the outstanding stocks or of the capital interest.