Form 5405

ProSeries Professional

Form 5405 - First-Time Homebuyer Credit

Use this form to take a refundable credit for first-time homebuyers. A first-time homebuyer is an individual who had no present ownership interest in a principal residence in the three-year period ending on the date of purchase of the qualifying principal residence.

If a taxpayer is allowed to claim a first-time homebuyer credit, the credit must be recaptured over 15 years. This recapture essentially makes the credit a 15 year interest free loan.

If the address of the home qualifying for the credit is not the same as on the tax return, enter the address of the qualifying home on Line A. The home can be acquired by purchase or construction. If the home is acquired by construction, the date acquired will be treated as the date the purchaser first occupies the home. If no acquisition date is entered or the date entered is outside the qualifying date range (after April 8, 2008 and before July 1, 2009), then this form will not calculate.

When entering the Purchase Price, enter the full purchase price. Do not prorate the price based on percentage ownership.