1040-US: First-time homebuyer credit claimed in prior year but sold home

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.

Question

The taxpayer claimed and received the First-time Homebuyer Credit in the prior year, but sold the home in 2017. How does UltraTax CS report the credit repayment?

Answer

During the proforma process, UltraTax CS reports the amount of credit received on the First-time Homebuyer Credit taken field in Screen 5405.

UltraTax CS calculates Form 5405 Parts I and II. If there is a credit repayment on Form 5405, line 10, UltraTax CS reports the amount on Form 1040, line 60b.

Note: There are reasons for disposition or change of main home that will not generate a repayment of credit. See the Form 5405 filing instructions for more information. Homes purchased in 2008 are subject to a 15-year repayment of the credit taken. UltraTax CS will proforma the credit taken for this repayment period if the home is not sold or no longer used as the principal residence. Homes purchased in 2009 or later are subject to repayment if the home is sold or no longer used as the principal residence for less than 36 months after the purchase date. UltraTax CS will proforma the credit taken for this repayment period as well.

Related topic: First-time homebuyer credit FAQs (1040)

Share This