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 or continue your return
- On the left menu, select Federal, then Deductions & Credits
- In the list below, select Show more next to Your Home
- Select Start or Revisit next to 2008 Homebuyer Credit Repayment
- On the Tell Us About Your Homebuyer Credit screen, answer Yes to the first question (it was still your main home on January 1, 2022)
- To delete an unwanted 5405, answer Yes to the second question (it stopped being your main home). Then select Continue and answer Yes on the next screen. You're done
- Enter the purchase date and then select Continue
- Follow the instructions