Form 5405

Form 5405

A form that one filed with the IRS to claim a tax credit for purchasing one's first home (or one's first home in a number of years) during 2011. For first-time buyers, the credit was worth 10% of the value of the home or $8,000, whichever was less.
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Modified adjusted gross income is adjusted gross income plus certain amounts of foreign-earned income, as detailed on Form 5405, the tax return form required to be filed along with a copy of the HUD-1 settlement form (the inclusion of this closing statement with your tax return is a new requirement for 2009) in order to claim the tax credit when filing Form 1040.
The credit is claimed using IRS Form 5405, First-Time Homebuyer Credit.
Following up on this initial problem, the IRS took steps to reject claims electronically that were filed with a future purchase date on Form 5405. George reported that the IRS has not decided what to do about the earlier 19,300 claims with a future home purchase date or whether or not the IRS would review the paper filings for the same period for claims involving future home purchase dates.
The revised rules require taxpayers to submit copies of their settlement statements (HUD-1 forms), along with their requests for credits using IRS Form 5405. Congress' new rules also prohibit individuals under the age of 18 or who are counted as dependents on another taxpayer's filings from claiming the credit.
The credit is claimed using an IRS form 5405. If you sell your home within three years after buying it, you have to pay the tax credit back out of the proceeds.
For example, IRS (1) issued a new form, the Form 5405--"First-Time Homebuyer Credit"--and new instructions for the Form 5405, and revised other related forms and instructions; (2) communicated with taxpayers and tax return preparers through a variety of avenues, such as news releases, postings on irs.gov, podcasts, and YouTube videos; and (3) made computer programming changes to enable processing for paper and electronically filed returns.
Eligible taxpayers will claim the credit on new IRS Form 5405. Learn more at www.irs.gov/newsroom/article/0,,id = 186831,00.html.
To claim the first-time buyer credit use Form 5405.
Visit IRS.gov for a revised version of Form 5405, which covers first-time home buyer credit.