Per the IRS, Instructions for Form 5405, Repayment of First-Time Homebuyer Credit, you would have needed to include Form 5405 in your 2014 tax return and paid the balance of the homebuyer credit. In some cases, the balance is waived (foreclosure, short sale, etc.) You will need to amend your 2014 tax returns to repay the homebuyer credit.
You can look up your account and balance at this link: https://www.irs.gov/individuals/first-time-homebuyer-credit-account-look-up
Form 5405 instructions read: 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 2017.
- 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);
You can see the info from above on page 1 of the instructions under Specific Instructions Instructions for Form 5405
TurboTax can help you with the amendment of your 2014 taxes. Please see the following FAQ:
My 2018 tax return was rejected for the same reason. I still own the home. I tried to fix online but it won't allow me. Can you provide steps for me to correct this? Do I need to pay for the desktop version again? I purchased the Self-Employed Online version.
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