I have a question about repayment of homebuyer credit. I sold my home before living in it for three years. If I had to move for my job, do I have to repay my first-time homebuyer credit using Form 5405?
Yes. You are responsible for repayment of homebuyer credit. Repay the credit on Form 5405 and attach it to your Form 1040.
The exceptions to repayment of homebuyer credit are for:
- Government service employees — If the disposition is in connection with government orders
- Death — If you claim the repayment of homebuyer credit on a joint return, the surviving spouse pays only his or her half of the remaining credit repayment amount.
- Divorce — If you transfer your home to your former spouse as part of a divorce, he or she is responsible for the rest of the repayments.
To learn more, see Topic 611 at www.irs.gov.
Related Resources
Do you have an undocumented person living with you? Learn whether or not you can claim them as a dependent. Get tax answers at H&R Block.
Can you deduct child support payments from your taxes? Learn more from the tax experts at H&R Block.
Can you claim a tax credit for education costs if you have scholarships and student loans? Learn more from the tax experts at H&R Block.
Do you own property in Mississippi? Find out everything you need to know about Mississippi state property tax, with help from the tax experts at H&R Block.
