Who must complete Form 5405 Repayment of First-time-2025

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Who Must File. You must file Form 5405 with your 2023 tax return if you purchased your home in 2008 and you meet either of the following conditions. You disposed of it in 2023. You ceased using it as your main home in 2023.
An individual who has had no ownership in a principal residence for a period of three years as of the date they purchase the new property.
About Form 5405, Repayment of the First-Time Homebuyer Credit | Internal Revenue Service.

People also ask

Each of you must file a separate Form 5405 to notify the IRS that you disposed of the home or ceased to use it as your main home and figure the amount of the repayment.
If you purchased your home in 2008: 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. For example, if you bought a home in 2008 and claimed the maximum credit of $7,500, the repayment amount is $500 per year.
Definition of a first-time home buyer in Florida To qualify for assistance with Florida Housing, an individual must meet the IRS definition of a first-time homebuyer, which means they must not have owned and occupied their primary residence for three years prior to their new home purchase.
Heres how to enter or delete Form 5405: Open or continue your return. On the left menu, select Federal, then Deductions Credits. In the list below, select Show more next to Your Home. Select Start or Revisit next to 2008 Homebuyer Credit Repayment.
For homes purchased in 2008, the credit operates much like an interest-free loan. You generally must repay it over a 15-year period. For homes purchased in 2009, you must repay the credit only if the home ceases to be your main home within the 36-month period beginning on the purchase date.

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