J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

25.21 Repayment of the First-Time Homebuyer Credit

The first-time homebuyer credit is no longer allowed. However, a credit claimed for a 2008 home purchase must be repaid in 15 installments, and repayment is generally accelerated if the home is sold or no longer used as a principal residence; see below for exceptions.

If you claimed a credit for a home bought in 2009-2011, you do not have to repay it if you continue to own it and use it as your principal residence for at least 36 months starting with the date of purchase. If within the 36-month period you sell the home, stop using it as your principal residence, or convert the entire home to rental or business property, repayment of the entire credit is required, unless one of the exceptions discussed below applies.

Note: For prior years, repayment of the credit was generally figured and reported on Form 5405 and then transferred to Form 1040 as an additional tax. However, when this book went to press, it was not clear if repayments for 2012 would be figured on Form 5405 or on a worksheet in the IRS instructions; see the Form 1040 instructions and the e-Supplement at jklasser.com .

Credit for home bought in 2008 must be repaid.

The 2008 credit for a home purchased after April 8, 2008 and before January 1, 2009 (Form 5405 for 2008) generally must be repaid over 15 years in 15 equal installment. Repayment began with the 2010 return. No interest is charged. For example, if you bought a qualifying home in September 2008 and you claimed ...