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kky2014
New Member

When im asked about homebuyers credit i click the option that i no longer had the home and it will not stay it jumps to i never recieved the credit in 2008

 
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3 Replies

When im asked about homebuyers credit i click the option that i no longer had the home and it will not stay it jumps to i never recieved the credit in 2008

Can't you just skip that Section?  Since you don't need to pay it what does it matter?

When im asked about homebuyers credit i click the option that i no longer had the home and it will not stay it jumps to i never recieved the credit in 2008

When did you stop using the home ?   Did you complete a form 5405 in that tax year ?

If you no longer have to pay the credit back you should be able to back up & skip that section.

When im asked about homebuyers credit i click the option that i no longer had the home and it will not stay it jumps to i never recieved the credit in 2008

If you stopped living in the home before 2016, you were supposed to file a form 5405 in the year you sold or moved out.  Your credit balance would have been immediately due in full, or forgiven, or a partial payment was owed, depending on the circumstances.  That would have ended your responsibility for repayment and you owe nothing after that.

Generally speaking, if you had a capital gain on the sale of the home, you owe repayment of the full credit balance up to the amount of the gain in the year you sold the home.  If you had a capital loss or broke even, the remaining credit balance is forgiven and you owe no further repayment.  If you converted to a rental, you owe full repayment in the year of the conversion.  There is a special rule if you were forced to leave the home due to fire or condemnation ("involuntary conversion").  If you had a loss on the involuntary conversion, the remaining credit balance is forgiven. If you moved into a replacement home and broke even or had a gain, you can continue to make installment payments for the rest of the 15 years.  (If this is what happened, answer "yes" you are still living in the home, since you are living in the replacement home.)

You will need to file an amended tax return for the year you moved out, including form 5405, to report the circumstances and determine what you owe.

Then for 2016, you owe no payment, but the IRS thinks you do, so you will need to print your 2016 return and mail it in.  If you moved out before 2015, then you may have made excess payments in other years that you can also get back by amending.  (For example, if you moved out in 2013, you may have made excess payments in 2014 and 2015 that you can get back by filing amended returns for those years.)


Amend https://ttlc.intuit.com/replies/3288565


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