turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Do I still have to repay the 1st time home buyers credit if my house was foreclosed on in 2016

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
Fern
New Member

Do I still have to repay the 1st time home buyers credit if my house was foreclosed on in 2016

If you lose your home in a foreclosure sale, you repay the credit only up to the amount of any gain you might recognize on the foreclosure.

You should file IRS Form 5405 (Repayment of First-Time Homebuyer Credit) with your 2016 Federal Tax Return. This will report that you have sold the home to the IRS. To complete the form, in Turbo Tax, you still need to go through the First Time Home Buyer Credit section. You will enter the information on the Lender Foreclosure amount and your cost basis in the home. If the foreclosure amount is less than your cost basis in the home, you will have a loss on the foreclosure. If you have a loss on the foreclosure, you will not need to repay the first time homebuyer credit.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies