Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Federal input screens

Screen 5405 - First-Time Homebuyer Credit Repayment (1040)

Form 5405 - General Information

Enter the address of the principal residence for which the credit recapture will be applied if different from the address reported in the
1040
 screen.

Form 5405 - Repayment, Disposition, or Change in User of Main Home

Use this section to enter information if the taxpayer claimed the first-time homebuyer credit in a prior year and the home was sold or no longer used as the principal residence, and to calculate the repayment of first-time homebuyer credit claimed in tax year 2008.
Enter
T
 or
S
 in this field to indicate whether the Form 5405 information you're entering pertains to the taxpayer or the spouse. Complete this field when the First-Time Homebuyer Credit was claimed in a prior year and the taxpayer and spouse were not married on the purchase date.
Enter the amount of the first-time homebuyer credit that was claimed in a prior year. The credit displayed may be subject to credit recapture in the current or future years. If the home was sold or no longer used as the taxpayer's principal residence in the current tax year, select a reason from
Reason for disposition or change of main home
.
Enter
X
 in the field if the taxpayer was a member of the U.S. uniformed services, Foreign Service, or intelligence community and sold the home in connection with government orders for qualified official extended duty service. Box
2
 is marked on Form 5405.
Select the reason for the disposition or change in status of the main home. When you select a reason, the corresponding box on Form 5405, line 3, is marked.
Code
Description
A
Home sold to unrelated party, gain
B
Home sold to related party, loss
C
Home sold to related party, or given to someone other than spouse
D
Home converted to rental, business, no longer used as main home
E
Home transferred due to divorce settlement
F
Home destroyed or condemned. Will acquire new home within 2 years
G
Home destroyed or condemned. Won't acquire new home within 2 years
H
Taxpayer/Spouse deceased
If the principal residence was sold using the
Home
 screen and the home sold is the same home used to claim the First-time Homebuyer Credit, the application uses data entered in the
Date former home was sold
,
Selling price
, and
Basis of home sold
 fields on the
Home
 screen to calculate the gain or loss on the home sold.
Enter the date in MM/DD/YYYY format in which the home claimed for the first-time homebuyer credit in the prior year was sold or no longer used as the principal residence. The application transfers this date to Form 5405, line 1.
If the home was sold to an unrelated person, enter the selling price of the home used to claim the first-time homebuyer credit in the prior year. The application uses this amount to calculate the gain on the sale of home. This field will need to be completed if the home was sold to an unrelated party.
Use this field to enter any expenses incurred in selling the home. Don't include expenses incurred while preparing the home for sale.
If the home was sold to an unrelated person, enter the basis of the home used to claim the First-time Homebuyer credit in a prior year if different from the purchase price. The application uses this amount to calculate the gain on the sale of the home.
Enter a percentage in this field if the property isn't 100 percent owned. This percentage affects the selling price, expense of sale, and basis of home. When you enter 100 percent of the selling price, expenses, and basis of home, the application applies the ownership percentage to the amount in each field.
Enter
1
 (yes) or
2
 (no) to indicate if the taxpayer and spouse were married at the date the principal residence was purchased.
Enter the full name of the ex-spouse if the home was transferred due to a divorce settlement. The application reports the name on Form 5405, line 3e.
Select the year if the First-Time Homebuyer credit was claimed on a joint return in a prior year and either the taxpayer or spouse has died. The application reduces the repayment amount of the surviving spouse's portion to half of the credit claimed on Form 5405.
To override (force) the calculated recapture of the first-time homebuyer credit, enter the amount of accelerated recapture of the first-time homebuyer credit. The application reports this amount as additional taxes on Form 1040 without review of credit recapture amount on Form 5405.
For homes purchased in 2008, enter the amount repaid in prior years.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close