jared-yoder
New Member

First Time Homebuyer Installment Payment we sold that home several years ago.

We puchased a home in May 2008 under the First-TIme Homebuyer Credit and are still paying back $500 annually with our refund to repay the loan. We sold that house in October 2011. When I go to log this in TurboTax Deluxe, I'm not sure which option to choose. The 3 options are:

Did you get the homebuyer credit in 2008?

1. Yes, and the home we received the credit for was still our main home on January 1, 2018

2. Yes, but the home we received the credit for stopped being our main home on or before December 31, 2017

3. No, we never got this credit

Obviously, #2 applies to our situation. However, when I select that option, it says "Delete Confirmation: The following form(s) are about to be deleted. Are you sure you want to delete them? Form 5405"

I don't want to delete that form... I want to fill that form out. Is this a glitch in the software or am I doing something wrong? I've attached two pictures to refer to what I'm talking about.

Thanks for any help you can give. 

‎June 4, 2019 2:57 PM
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ChristieB
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Deductions & credits

It is because the sale of this home should have been reported on Form 5405 the year that it was sold. Please see the following regarding the First-Time Homebuyer Credit.  

You sold your main home or the home is no longer your main home

You must report the sale or other disposition of your main home on a completed Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, and attach it to your tax return for the year of the sale or other disposition. The IRS matches information from a variety of sources when your home is sold, destroyed, foreclosed on, or is no longer your main home. If you received the FTHBC and the IRS has information that the home is no longer your main home, the IRS checks your tax records to find out if you reported the sale or other disposition on the Form 5405. You may or may not have to repay the credit, but you do need to report the change to the IRS on the Form 5405.

https://www.irs.gov/newsroom/first-time-homebuyer-credit

‎June 4, 2019 2:57 PM
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