Form 5405

[cyoung016]

I have been re-paying the first time homebuyer credit since 2008.  However, I just learned that since I sold the home at a loss, I do not need to repay.  However, I sold the home in 2015 but never filed the sale of the home.  How can I file the sale of the home and loss now in order to not repay future years - I still owe $2500.

[PattiF]

You will need to file an amended return for the year you sold the home and report that on form 5405.  You can claim credit for payments you made through 2020.  For 2021, you don't owe repayment but the IRS thinks you do so you will have to file by mail.

You will need to mail a paper return and include Form 5405.

This TurboTax Help article explains this in detail. 

[Critter-3]

Hate to be the one to bust your bubble but technically you have to go back and amend the 2015 return to show the sale of the home on the 5405 form for that year. Then you would amend the 16, 17, 18, 19 and 20 tax returns to get back the $500 per year that you paid in correctly. The really sad news is you can't get refunds for 15, 16 or 17 at this late date and you can only get the 2018 if you file the amendment before April 15th of this year so get cracking.

[cyoung016]

thank you for that help!  However, the home was sold in 2015 -- isn't that too long ago to file an amended return?  I thought the max was 3 years?

[cyoung016]

I can live with not getting money back (sadly).  But just trying to not pay the future years anymore.  My confusion is I thought 2015 is too late to go back to amend?  I thought 3 years was the max?