Form 5405 is the Internal Revenue Service (IRS) form for reporting that a home you bought in 2008, and for which you claimed the first-time homebuyer credit, was sold, given away, converted or otherwise stopped being your main home. It also figures how much of the credit you must repay with your 2024 tax return. It is attached to your return, and 2024 is the last year the form is filed. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the form and its instructions are published by the IRS at www.irs.gov/Form5405.
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What is Form 5405?
Form 5405, Repayment of the First-Time Homebuyer Credit, is the IRS form that notifies the IRS a home bought in 2008, for which you claimed the credit, was disposed of or stopped being your main home, and figures the repayment due with your 2024 return.
The Department of the Treasury's Internal Revenue Service (IRS) issues it under OMB No. 1545-0074. It has three parts. Part I records the date of the disposition or change in use and the situation that applies, through the boxes on lines 2 and 3. Part II figures the credit to be repaid, ending on line 8. Part III is a gain or (loss) worksheet, completed only if the home was destroyed or sold to someone who is not related to you, including a sale through condemnation or under threat of condemnation.
The IRS instructions explain the timing. The repayment requirement has expired for homes purchased after 2008 and continues only for homes purchased in 2008. The 15-year repayment period began with the 2010 tax return and ends with the 2024 return, so 2024 is the last year to file Form 5405. The 2024 revision is the last revision of the form and its instructions.
Form 5405 is not needed for an ordinary installment payment. If you owned and used the home as your main home during all of 2024, you enter the repayment on 2024 Schedule 2 (Form 1040), line 10, without filing this form.
Who needs to file Form 5405?
You must file Form 5405 with your 2024 tax return if you purchased your home in 2008, claimed the first-time homebuyer credit for it, and either disposed of the home in 2024 or ceased using it as your main home in 2024.
- Joint credit: if you and your spouse claimed the credit on a joint return, each spouse is treated as having been allowed half of the credit. Each spouse who meets either condition files a separate Form 5405 with only his or her own name and social security number.
- Surviving spouse: if the credit was claimed on a joint return and one spouse died, the surviving spouse continues repaying his or her half. If the home was disposed of or ceased to be the main home, the survivor files a separate Form 5405 with his or her own information.
- Deceased taxpayer: repayment is not required of a taxpayer who claimed the credit and died, unless the credit was claimed on a joint return. If you file a joint return for 2024 with the deceased taxpayer, complete the form with the deceased taxpayer's information only and check box 3h.
Do not file Form 5405 if you owned the home and used it as your main home throughout 2024, or if you converted only part of it to rental or business use and still use the rest as your main home. In those cases you enter the repayment on 2024 Schedule 2 (Form 1040), line 10. Members of the uniformed services or Foreign Service and employees of the intelligence community who meet the line 2 conditions do not have to repay the credit.
When to file Form 5405
File Form 5405 with your 2024 tax return if you disposed of a home you bought in 2008 during 2024, or ceased using it as your main home in 2024. The form has no separate due date of its own: it travels with the return it is attached to.
For a sale, including through foreclosure, you repay the credit with the return for the tax year in which the sale is completed. In general, that is when the purchaser or lender obtains title to your home.
If the event happened before 2024, for example a home destroyed or condemned earlier, your 2024 annual repayment is your final payment and you do not file Form 5405: you enter it on 2024 Schedule 2 (Form 1040), line 10. 2024 is the last year of the 15-year repayment period, so no later returns use this form.
Documents you need
- The tax return Form 5405 is attached to: Form 1040, 1040-SR, 1040-NR, or 1040-X, as printed at the top of the form.
How to fill out Form 5405
Enter your name and Social Security number
At the top, enter the name shown on your return and your social security number. If you and your spouse each file, each enters only his or her own name and number on a separate form.
Enter the disposition date on line 1
Enter the date you disposed of the home, or stopped using it as your main home, in MM/DD/YYYY format. If the home was destroyed or condemned, or disposed of under threat of condemnation, enter that date or the date it ceased to be your main home, whichever is earlier.
Check line 2 if it applies
Check the box if you (or your spouse) are or were a member of the uniformed services or Foreign Service, or an employee of the intelligence community, and the home was sold or ceased to be your main home because of U.S. Government orders for qualified official extended duty. No repayment is required and you stop there.
Choose one box on line 3
Check the box, 3a through 3h, that describes what happened to the home: sale to an unrelated person with or without gain, sale or gift to a related person, conversion of the entire home, transfer to a spouse or ex-spouse (enter the ex-spouse's full name), destruction or condemnation, or death of the taxpayer. Follow the Go to or Stop here note beside the box.
Enter the credit claimed on line 4
Enter the amount of the credit you claimed on Form 5405 for 2008. If you filed jointly, or checked box 3f or 3g, follow the line 4 instructions: for example, enter one-half if your spouse died.
Enter credit already repaid on line 5
Enter the amount of the credit you repaid with your tax returns for the years 2010 through 2023.
Subtract on line 6
Subtract line 5 from line 4. If you checked box 3a, go to line 7; otherwise skip line 7 and go to line 8. For boxes 3f and 3g, see the instructions.
Enter the gain on line 7
Enter the gain from line 15 if you checked box 3a, or box 3f for an event that was not a sale to a related person. In other cases leave line 7 blank.
Figure the repayment on line 8
For box 3a, enter the smaller of line 6 or line 7. For box 3c or 3d, enter line 6. For boxes 3f and 3g, follow the line 8 rules in the instructions. Then enter this amount on 2024 Schedule 2 (Form 1040), line 10.
Complete the Part III worksheet if needed
Only for a destroyed home or a sale to an unrelated person: enter the selling price or proceeds on line 9, selling expenses on line 10, and subtract for line 11. Enter adjusted basis on line 12 (from Pub. 523, Worksheet 2, line 6), the credit claimed minus amounts repaid on line 13, and subtract for lines 14 and 15.
Review, sign and download the PDF
Check that the box on line 3 matches the result on line 15 (gain: 3a or 3f; no gain: 3b or 3g) and that line 8 carries to Schedule 2. Download or print the completed PDF from FillingPDF and attach it to your tax return.
How to submit Form 5405
Form 5405 is not filed on its own. It is attached to your tax return: the form says to attach it to Form 1040, 1040-SR, 1040-NR, or 1040-X.
- With your return: submit Form 5405 together with the return it is attached to, through the same channel you use for that return. The form prints no separate mailing address, portal or appointment rule.
- Schedule 2: after completing Part II, enter the amount from line 8 on your 2024 Schedule 2 (Form 1040), line 10.
- Spouses: if you and your spouse each must file, each prepares a separate Form 5405 and each form is filed with the return.
- Deceased taxpayer on a joint return: the form completed with the deceased taxpayer's information (box 3h) is filed with the joint return.
The IRS publishes the form, instructions and latest information at www.irs.gov/Form5405. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Filing Form 5405 for a normal installment payment when you owned and used the home as your main home all of 2024; the instructions say to enter the repayment on 2024 Schedule 2 (Form 1040), line 10 instead.
- Filing Form 5405 after converting only part of the home to rental or business use while still living in the rest; the instructions say not to file the form for that conversion.
- Entering the line 8 amount anywhere other than 2024 Schedule 2 (Form 1040), line 10.
- Filing one joint Form 5405 when the credit was claimed jointly; each spouse who meets a condition files a separate form with only his or her own name and social security number.
- Checking box 3a or 3b without completing Part III when the home was sold to an unrelated person; Part III decides whether you had a gain.
- Entering the full credit on line 8 for box 3a instead of the smaller of line 6 or line 7.
- Completing Part III for a sale to a related person; the worksheet is only for a destroyed home or a sale to an unrelated person.
- Checking box 3d when you converted only part of the home, instead of the entire home.
Frequently asked questions
What is Form 5405 used for?
Form 5405 notifies the IRS that a home you bought in 2008 and claimed the first-time homebuyer credit for was disposed of or ceased to be your main home in 2024. It also figures how much of the credit you must repay with your 2024 tax return.
Who has to file Form 5405 for 2024?
You file it with your 2024 return if you purchased your home in 2008 and either disposed of it in 2024 or stopped using it as your main home in 2024. If you claimed the credit jointly, each spouse who meets a condition files a separate form.
Do I need Form 5405 if I still live in the home?
No. If you owned the home and used it as your main home during all of 2024, you do not file Form 5405. You enter your repayment, which is your final payment, on 2024 Schedule 2 (Form 1040), line 10.
Where does the line 8 amount of Form 5405 go?
Enter the amount from line 8 on your 2024 Schedule 2 (Form 1040), line 10. The form prints this instruction directly under Part II, so the repayment flows into your tax return from there.
Is 2024 the last year for Form 5405?
Yes. The IRS instructions say 2024 is the last year to file Form 5405. The 15-year repayment period for homes purchased in 2008 began with the 2010 return and ends with the 2024 return, and the 2024 revision is the last revision.
Do I repay the credit if I sold the home at a loss?
Generally not. If you sold to an unrelated person and had no gain, check box 3b and no repayment is required. If you sold to a related person, you must repay the entire remaining credit, even with a loss.
What happens to the credit if the taxpayer who claimed it died?
Repayment is not required of the deceased taxpayer unless the credit was claimed on a joint return. In that case the surviving spouse continues repaying his or her half. For a joint 2024 return with the deceased, complete the form for the decedent and check box 3h.
Can I fill out Form 5405 online on FillingPDF?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the form with the IRS; you submit it attached to your tax return.
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