How do I add or remove Form 5405 for the first-time homebuyer credit?
Form 5405 (Repayment of the First-Time Homebuyer Credit) figures the repayment amount (actually, an additional tax) for the 2008 First-Time Homebuyer Credit. The 5405 is also used to notify the IRS that the home was disposed of or ceased to be your main home.
Here's how to enter – or delete – Form 5405:
- Open (continue) your return if you don't already have it open.
- Inside TurboTax, search for homebuyer credit and then click or tap the "Jump to" link in the search results.
- On the Tell us about your homebuyer credit screen, answer Yes to the first question (it was still your main home on January 1, 2016).
- To delete an unwanted 5405, answer Yes to the second question (it stopped being your main home). Then click or tap Continue and answer Yes on the next screen. You're done.
- Enter the purchase date and then click or tap Continue.
- Follow the onscreen instructions.