U.S. Individual Income Tax Return Forms

Note: The draft you are looking for begins on the next page.

Caution: DRAFT—NOT FOR FILING

This is an early release draft of an IRS tax form, instructions, or publication,
which the IRS is providing for your information. Do not file draft forms and do
not rely on draft forms, instructions, and pubs for filing. We incorporate all
significant changes to forms posted with this coversheet. However, unexpected
issues occasionally arise, or legislation is passed—in this case, we will post a
new draft of the form to alert users that changes were made to the previously
posted draft. Thus, there are never any changes to the last posted draft of a
form and the final revision of the form. Forms and instructions are subject to
OMB approval before they can be officially released, so we post drafts of them
until they are approved. Drafts of instructions and pubs usually have some
additional changes before their final release. Early release drafts are at
IRS.gov/DraftForms and remain there after the final release is posted at
IRS.gov/LatestForms. Also see IRS.gov/Forms.
Most forms and publications have a page on IRS.gov: IRS.gov/Form1040 for
Form 1040; IRS.gov/Pub501 for Pub. 501; IRS.gov/W4 for Form W-4; and
IRS.gov/ScheduleA for Schedule A (Form 1040), for example, and similarly for
other forms, pubs, and schedules for Form 1040. When typing in a link, type it
into the address bar of your browser, not a Search box on IRS.gov.
If you wish, you can submit comments to the IRS about draft or final forms,
instructions, or pubs at IRS.gov/FormsComments. Include “NTF” followed by
the form or pub number (for example, “NTF1040”, “NTFW4”, “NTF501”, etc.) in
the body of the message to route your message properly. We cannot respond
to all comments due to the high volume we receive and may not be able to
consider many suggestions until the subsequent revision of the product, but we
will review each “NTF” message. If you have comments on reducing paperwork
and respondent (filer) burden, with respect to draft or final forms, please
respond to the relevant information collection through the Federal Register
process; for more info, click here.

Instructions for Form 5405

Department of the Treasury
Internal Revenue Service

(Rev. November 2024)

Repayment of the First-Time Homebuyer Credit
Section references are to the Internal Revenue Code unless
otherwise noted.

Condemnation or threat of condemnation. If the home is
destroyed in 2024, or you sell the home in 2024 through
condemnation, or under threat of condemnation, to someone
who isn't related to you, the repayment with your return for the
year is limited to the gain on the disposition, as determined in
Part III of Form 5405. The amount of the credit in excess of
the gain doesn't have to be repaid. (See Related Persons,
later.)

TREASURY/IRS
AND OMB USE
ONLY DRAFT
July 24, 2024

Future Developments

For the latest information about developments related to
Form 5405 and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form5405.

What’s New

2024 is the last year to file Form 5405. The 15-year
repayment period for homes purchased in 2008 began with
your 2010 tax return and ends with your 2024 tax return. The
2024 revision is the last revision of Form 5405 and these
instructions.

Reminder

Repayment requirement. The repayment requirement has
expired for homes purchased after 2008. The repayment
requirement continues to apply to homes purchased in 2008.

Purpose of Form

Use Form 5405 to do the following.
• Notify the IRS that the home you purchased in 2008 and
for which you claimed the credit was disposed of or ceased to
be your main home in 2024. Complete Part I and, if
applicable, Parts II and III.
• Figure the amount of the credit you must repay with your
2024 tax return. Complete Part II and, if applicable, Part III.

Who Must File

You must file Form 5405 with your 2024 tax return if you
purchased your home in 2008 and you meet either of the
following conditions.
1. You disposed of it in 2024.
2. You ceased using it as your main home in 2024.
But see Exceptions, later.
In all other cases, you aren't required to file Form 5405.
Instead, enter the repayment on 2024 Schedule 2 (Form
1040), line 10. For example, you aren't required to file Form
5405 if you are making an installment payment of the credit
you claimed for a home you purchased in 2008, and you
owned and used the home as your main home during all of
2024.

Credit claimed on a joint return. If you and your spouse
claimed the credit on a joint return, each spouse is treated as
having been allowed half of the credit for purposes of
repaying the credit. Each spouse who meets either condition
1 or 2 above must file a separate Form 5405.
The following are exceptions to the repayment rule.
Jul 23, 2024

Person who claimed the credit dies. If a person who
claimed the credit dies, repayment of the remaining balance
of the credit isn't required unless the credit was claimed on a
joint return. If the credit was claimed on a joint return, then the
surviving spouse is required to continue repaying his or her
half of the credit (regardless of whether he or she was the
purchaser) if none of the other exceptions apply.

Related Persons

General Instructions

Exceptions

Transfer to spouse or ex-spouse. If the home was
transferred to a spouse (or ex-spouse as part of a divorce
settlement), the spouse who received the home is
responsible for repaying the credit (regardless of whether he
or she was the purchaser) if none of the other exceptions
apply.

Related persons include the following.
1. Your spouse, ancestors (parents, grandparents, etc.),
or lineal descendants (children, grandchildren, etc.).
2. A corporation in which you directly or indirectly own
more than 50% in value of the outstanding stock of the
corporation.
3. A partnership in which you directly or indirectly own
more than 50% of the capital interest or profits interest.
For more information about related persons, see the
discussion under Nondeductible Loss in chapter 2 of Pub.
544, Sales and Other Dispositions of Assets. When
determining whether you acquired your main home from a
related person, family members in that discussion include
only the people mentioned in (1) above.

Specific Instructions
Part I. Disposition or Change in Use
of Main Home for Which the Credit
Was Claimed

Complete Part I if you claimed the first-time homebuyer credit
for a home purchased in 2008 and either you disposed of the
home or it ceased to be your main home in 2024. This
includes situations where:
• You sold the home (including through foreclosure);
• You converted the entire home to business or rental
property;
• You abandoned the home (except in connection with a sale
or foreclosure);
• The home was destroyed, condemned, or disposed of
under threat of condemnation; or

Cat. No. 54378F

• The taxpayer who claimed the credit died in 2024.
Sales (including through foreclosure). In the case of a
sale (including through foreclosure) of your main home, you
must repay the credit with the tax return for the tax year in
which the sale is completed. In general, this will occur when
the purchaser (or lender) obtains title to your home.
Name and social security number. Enter your name and
social security number. Each spouse who meets condition 1
or 2 earlier under Who Must File must file a separate Form
5405. Each spouse must enter only his or her name and
social security number on his or her separate Form 5405.
This is true whether a joint return or separate returns are filed.

• Any of the intelligence elements of the Army, the Navy, the
Air Force, the Marine Corps, the Federal Bureau of
Investigation, the Department of the Treasury, the
Department of Energy, and the Coast Guard.
• The Bureau of Intelligence and Research of the
Department of State.
• Any of the elements of the Department of Homeland
Security concerned with the analyses of foreign intelligence
information.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
July 24, 2024

Line 1. If your home was destroyed or condemned, or you
disposed of the home under threat of condemnation, enter
the date it was destroyed, condemned, or disposed of under
threat of condemnation (or the date it ceased to be your main
home, whichever is earlier).

Line 2. Check the box if you (or your spouse, if married):
• Are, or were, a member of the uniformed services or
Foreign Service or an employee of the intelligence
community (defined below); and
• Sold the home or the home ceased to be your main home
after 2008 because you (or your spouse, if married) received
U.S. Government orders to serve on qualified official
extended duty (defined next).
If you (or your spouse, if married) meet both of these
conditions, you (and your spouse, if married) don't have to
repay the credit.
Qualified official extended duty. You are on qualified
official extended duty while:
• Serving at a duty station that is at least 50 miles from your
main home, or
• Living in U.S. Government quarters under U.S.
Government orders.
You are on extended duty when you are called or ordered to
active duty for a period of more than 90 days or for an
indefinite period.
Uniformed services. The uniformed services are:
• The Armed Forces (the Army, Navy, Air Force, Marine
Corps, and Coast Guard),
• The commissioned corps of the National Oceanic and
Atmospheric Administration, and
• The commissioned corps of the Public Health Service.
Foreign Service member. For purposes of the credit, you
are a member of the Foreign Service if you are any of the
following.
• A Chief of mission.
• An Ambassador at large.
• A member of the Senior Foreign Service.
• A Foreign Service officer.
• Part of the Foreign Service personnel.
Employee of the intelligence community. For purposes
of the credit, you are an employee of the intelligence
community if you are an employee of any of the following.
• The Office of the Director of National Intelligence.
• The Central Intelligence Agency.
• The National Security Agency.
• The Defense Intelligence Agency.
• The National Geospatial-Intelligence Agency.
• The National Reconnaissance Office and any other office
within the Department of Defense for the collection of
specialized national intelligence through reconnaissance
programs.
2

Lines 3a, 3b, and 3c. If you sold your home to someone
who isn't related to you, complete Part III to figure the gain or
(loss) on the sale. (The person isn't related to you if he or she
doesn't meet the definition under Related Persons, earlier.)
The repayment is limited to the amount of gain. The amount
of the credit in excess of the gain doesn't have to be repaid.
Line 3d. See the Tip below for information about converting
your entire home to business or rental use.
Don't check this box if you converted only a part of the
home to rental or business use and you continue to use the
other part as your main home. Don't file Form 5405 for this
conversion. Enter your annual repayment on your 2024
Schedule 2 (Form 1040), line 10.

Example 1. You claimed the credit for a home you
purchased in 2008. In January 2024, you converted the
basement of your home for use as a child care business. You
continued to use the rest of your home as your main home in
2024. You are required to repay one-fifteenth (1/15) of the
credit with your 2024 return. You don't have to file Form 5405.
Instead, enter the repayment on your 2024 Schedule 2 (Form
1040), line 10.
Note. If you chose to repay more than the minimum amount
with any prior tax return(s), see Repaying more than the
minimum amount, later, for information on the final payment
on your 2024 tax return.
Example 2. You claimed the credit for a home you
purchased in 2008. In January 2024, you moved out of the
home and converted it to rental property. You must check the
box on line 3d and complete Part II. You must repay the
balance of the credit with your 2024 tax return.
When you convert your entire home to business or

TIP rental use, you no longer use any part of it as your

main home. The home is used for business if you use
it for an activity that you carry on to make a profit. The facts
and circumstances of each case determine whether or not an
activity is a business.
Line 3e. Check the box on line 3e if you meet either of the
following conditions.
• You transferred the home to your spouse.
• You and your spouse divorced and you transferred the
home to your ex-spouse as part of the divorce settlement.
Include the full name of your ex-spouse in the space
provided.
The spouse who received the home is responsible for
repaying the credit under the rules provided in these
instructions.
Lines 3f and 3g—Home destroyed or sold through condemnation or under threat of condemnation. If your
home was destroyed or you sold your home through
condemnation, or under threat of condemnation, to a person
who isn't related to you, the amount of the credit you have to
repay (if any) is limited to the gain on the disposition.
Instructions for Form 5405 (Rev. 11-2024)

Complete Part III to determine whether you have a gain.
Check the box on line 3f if you have a gain. If you don't have
a gain, you don't have to repay any of the credit. Check
the box on line 3g if you don't have a gain. Then read the
instructions below for line 3f or line 3g, whichever applies.
Line 3f. Complete Part II to figure your installment
payment for 2024. However, if the buyer is related to you, skip
line 7 in Part II to repay the entire remaining amount of the
credit you claimed. See Related Persons, earlier.
If the event occurred before 2024, your annual repayment
requirement with your 2024 return will be your final payment.
You don’t have to file Form 5405. Instead, enter the
repayment on your 2024 Schedule 2 (Form 1040), line 10.
Line 3g. If you don't have a gain, you don't have to repay
any of the credit, unless you sold your home under threat of
condemnation to someone who is related to you. If the buyer
is related to you, the rules explained above for line 3f apply,
and you must repay the entire remaining amount of the credit
you claimed. This is true even if you had a loss on the sale.

ex-spouse as part of a divorce settlement), enter the total
credit claimed by both you and your spouse (or ex-spouse).
Enter the credit you claimed for a home that was
destroyed or that you sold through condemnation or under
threat of condemnation.
Line 6. If you checked the box on line 3f and the event
wasn't a sale to a related person (defined earlier), go to
line 7.
If you checked the box on line 3f or line 3g and the event
was a sale to a related person (defined earlier), skip line 7
and go to line 8.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
July 24, 2024

Line 3h. If you are filing a joint return for 2024 with the
deceased taxpayer, complete Form 5405 with the deceased
taxpayer's information only. Check box 3h and file the form
with your joint return. The deceased taxpayer need not repay
the credit in 2024 or any later year.
If you claimed the credit on a joint return with the
deceased taxpayer, the following rules also apply.
1. If you didn't dispose of the home and the home didn't
cease to be your main home, don't complete a separate
Form 5405 with your information.
2. If you disposed of the home or the home ceased to be
your main home, complete a separate Form 5405 with your
information only. Check the appropriate box on lines 3a
through 3g and file the form with your joint return.
Note. If you originally claimed the credit on a joint return,
instructions 1 and 2 above apply even if you aren't filing a
joint return with the deceased taxpayer for 2024.

Part II. Repayment of the Credit

If you owned the home and used it as your main home during
all of 2024, you must continue repaying the credit with your
2024 tax return. Your 2024 payment will be your final
payment. You don't have to file Form 5405. Instead, enter the
repayment on your 2024 Schedule 2 (Form 1040), line 10.
If you are required to repay the credit because you
disposed of a home you purchased, or that home ceased to
be your main home, you must generally repay the balance of
the unpaid credit with your 2024 tax return. An exception
applies for certain members of the uniformed services or
Foreign Service or employees of the intelligence community
(see the instructions for line 2, earlier).
If you and your spouse claimed the credit on a joint

TIP return, each spouse is treated as having been

allowed half of the credit for purposes of repaying the
credit. 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.
Line 4. If you claimed the credit on a joint return but your
spouse died, enter one-half (1/2) of the credit you claimed.
The remaining half (that is, your spouse's half) doesn't have
to be repaid. If you and your spouse claimed the credit and
the home was later transferred to you by your spouse (or
Instructions for Form 5405 (Rev. 11-2024)

Line 7. If any of the following conditions apply, enter on
line 7 the gain from line 15.
• You checked the box on line 3a.
• You checked the box on line 3f and the event wasn't a sale
to a related person (defined earlier).
If neither of the above conditions apply, leave line 7 blank.
Line 8. Read the following to determine the amount to enter
on line 8.
1. If you checked the box on line 3a, enter the smaller of
line 6 or line 7 on line 8.
2. If you checked the box on line 3c or line 3d, enter the
amount from line 6 on line 8.
3. If you checked the box on line 3f or line 3g, the
following rules apply.
a. If you checked the box on line 3f for an event that
occurred in 2024 and you didn't sell the home to a related
person (defined earlier), enter the smaller of line 6 or line 7
on line 8.
b. If you checked the box on line 3f or line 3g for an event
that occurred in 2024 and you sold the home to a related
person (defined earlier), enter the amount from line 6 on
line 8.
Since the 15-year repayment period for homes

TIP purchased in 2008 began with your 2010 tax return

and ends with your 2024 tax return, the last possible
year of repayment for a home will be for 2024.
Repaying more than the minimum amount. You must
repay at least one-fifteenth (1/15) of the credit with every tax
return during the repayment period until the year the credit is
paid in full. You could have chosen to repay more than the
minimum amount with any tax return. If you repaid more than
the minimum payment with any prior tax return, your final
payment for 2024 may be less than the required minimum
payment.
Example. You claimed a $7,500 credit for a home
purchased in 2008. You are required to repay at least $500 of
the credit ($7,500 ÷ 15 years = $500) each year for 15 years
starting with your 2010 tax return. However, you chose to
repay $700 with your 2010 tax return; you made the required
minimum payment of $500 with your 2011, 2012, 2013, 2014,
2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, and 2023
tax returns. The minimum repayment with your 2024 tax
return is $300 (the balance of unpaid installments)—not
$500.

Part III. Form 5405 Gain or (Loss)
Worksheet
Line 12. Enter the amount from line 6 of Worksheet 2 in Pub.
523.
3