Get Form 5405 Rev December 2015 Repayment Of The First-time Homebuyer Credit

For homes purchased in 2008, the first-time homebuyer credit is similar to a 15-year interest-free loan. Normally, it is repaid in 15 equal annual installments beginning with the second tax year after the year the credit is claimed.

If you were a first-time home buyer between April 8, 2008 and January 1, 2009, you might recall taking advantage of The Housing and Economic Recovery Act of 2008 that allowed eligible homeowners to utilize an interest-free loan equal to 10% of the purchase price of a home (up to $7,500).

The credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments that began in the 2010 income tax year. ... If you make an installment payment, you do not need to attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, to your federal tax return.

Form 5405, First-Time Homebuyer Credit and Repayment of the Credit was a tax form distributed by the Internal Revenue Service (IRS) and used by first-time homeowners or long-time residents of a home to claim a tax credit that was available from April 9, 2008, through September 2010.

Taxpayers who took the credit on their federal income tax returns in 2008 are obligated to repay the tax credit over 15 years beginning with their 2010 tax returns. They'll have to make payments until 2025.

The homebuyer credit is repaid as an additional tax on your federal tax return if you bought your home and qualified in 2008. It must be repaid at the rate of 6 2/3%, or 1/15 of your credit amount. This works out to annual repayments of $500 per year if you received the maximum $7,500 credit.

The homebuyer credit is repaid as an additional tax on your federal tax return if you bought your home and qualified in 2008. It must be repaid at the rate of 6 2/3%, or 1/15 of your credit amount. This works out to annual repayments of $500 per year if you received the maximum $7,500 credit.

You don't have to file Form 5405. Instead, enter the repayment on your 2020 Schedule 2 (Form 1040), line 7b. If the event occurred after 2018, your annual repayment requirement continues until the year in which the 2-year period ends.

The First-Time Home Buyer's Tax Credit is a $5,000 non-refundable tax credit. If you're buying a home for the first time, claiming the first-time home buyer credit can land you a total tax rebate of $750.

You must file Form 5405 with your 2020 tax return if you purchased your home in 2008 and you meet either of the following conditions. You disposed of it in 2020. You ceased using it as your main home in 2020.