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Form 5405 First-Time Homebuyer Credit and Repayment of the Credit

Form 5405 First-Time Homebuyer Credit and Repayment of the Credit

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INSTRUCTIONS: FIRST-TIME HOMEBUYER CREDIT AND REPAYMENT OF THE CREDIT (Form 5405)

For members of the armed services, foreign services or intelligence services of the government, a credit for the purchase of a house is available. IRS form 5405 must be completed to take advantage of this credit. The form can be obtained from the IRS' website or at a branch office.

First-Time Homebuyer Credit And Repayment Of The Credit 5405 Step 1: Review the instructions to make sure that you qualify for this credit. In addition to defining which government employees are qualified for this credit, you will need to make sure your dates of service and the date of property purchase qualify you for this credit.

First-Time Homebuyer Credit And Repayment Of The Credit 5405 Step 2: The first page is for the use of people applying for this credit. This means you will not need to fill out page 2. Under Part I, enter the address of the house in question, the date of the purchase and answer questions about when you signed the contract and whether you purchased it from a relative. After completing these questions, the instructions may state you cannot claim this credit.

First-Time Homebuyer Credit And Repayment Of The Credit 5405 Step 3: Under Part II, enter the purchase price of the home. You will then perform the series of calculations as directed. The total credit you are eligible for should be entered in line 10.

First-Time Homebuyer Credit And Repayment Of The Credit 5405 Step 4: Attach all documentation concerning the purchase of property.

First-Time Homebuyer Credit And Repayment Of The Credit 5405 Step 5: If you are completing the form because you sold the home, converted it for business purposes or otherwise made a change to property purchased with a credit from 2008 onwards, you will need to fill out Parts III and IV of this form. Follow the instructions as directed to determine what kind of payment on your credit must be made.

First-Time Homebuyer Credit And Repayment Of The Credit 5405 Step 6: If your home was destroyed or sold to a person not related to you, complete Part V of the form to determine whether you must repay the credit.

First-Time Homebuyer Credit And Repayment Of The Credit 5405 Step 7: Sign and date the form. Submit it electronically or via mail.


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