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Category: Tax Questions

Repayment Of The First-Time Homebuyer Credit (Form 5405)

If the first-time homebuyer credit was claimed for a home that was purchased in 2008, repayment of the loan will generally begin with the 2010 tax return.  In addition, repayment of any credit claimed for 2008 or 2009 is required must be included on the 2010 tax return if the home was sold or the home stopped being the main home in 2010.

If repayment of the credit is required, Parts III and/or IV of Form 5405 must be completed.  To enter a repayment of the first-time homebuyer credit, from the Main Menu of the Tax Return (Form 1040), select:

  • Other Taxes Menu
  • First-Time Homebuyer Credit Repayment
  • Enter the 2008 First-Time Homebuyer Credit Repayment amount on line 1.

If there were changes in the main home, such as foreclosure, sale, catastrophic loss, or death of taxpayer, you would need to fill out Part III in addition to the repayment.

  • Other Taxes Menu
  • First-Time Homebuyer Credit Repayment
  • Complete Form 5405
  • Select Part III - Disposition or Change of Main Home
  • Enter the date the changes to the home were made on Line 1
  • On Line 3, select the reason the home is no longer the taxpayer's main home

NOTE: This is a guide on entering First Time Homebuyer Credit into the TaxSlayer Pro program.  This is not intended as tax advice.

Additional Resources:

Instructions for Form 5404 - First Time Homebuyers Credit

Last Updated: 6/5/2018

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