If you received the First-Time Homebuyer Credit in 2008, when you purchased your home, you may be required to pay the remaining amount due when you dispose of the home or it ceases being your main home during the tax year.
Here are examples of when your home stops being your main home:
- You sell the home or lose it through foreclosure
- The home was converted to a rental or business property
- The home was abandoned (except through connection with a sale or foreclosure)
- Home was condemned, destroyed or disposed of under threat of condemnation.
- Home was transferred to a spouse or former spouse in a divorce settlement
- The taxpayer dies who had claimed the credit (during the tax year)
You should report the disposition in the tax year in which it occurred (if prior to current tax year). If you have already filed a return without this information, you will need to amend the tax return for the year in which the home was disposed and complete Form 5405 within the Amended Return.
If you are not unsure how much your repayment amount is, please visit the IRS website, First Time Homebuyer Credit Account Look-Up.