Form 5405 First-time home buyer credit rec'd for $7500.

[Greta]

Client bought house in 2008 and received $7500 credit. He repaid $500 per year starting in 2009, so he has repaid the loan in full in 2023. But IRS claims he still owes in 2024. Another client had same issue. Is there a way to counter the rejection? Lacking 15 years of tax returns, is there an IRS site to check on this?

[rbynaker · Accepted solution]

They should have gotten a year off with repayment starting in 2010 (so year 15 is 2024 and hopefully this goes away next year!)

https://www.irs.gov/taxtopics/tc611

"Your 15-year repayment period started with 2010, the second taxable year from 2008."

Rick

[Just-Lisa-Now-]

https://www.irs.gov/credits-deductions/individuals/first-time-homebuyer-credit-account-look-up

[Juliewish]

Hello Greta,

I have the same issue.  I think the repayment starting in 2009 but IRS insisted starting in 2010.

How you solve the issue?  

Appreciated any input.

[Greta]

Apparently started in 2010. I refiled with a $500 payment added. This got rejected because $500 was more than needed. The rejection letter gives a site where I discovered the correct amount and refiled successfully. That site for a married couple you have to do twice, once for each spouse. So it was an extra bit of work I did for these clients.

[Dusty1]

Greta:  What is the site?

[Just-Lisa-Now-]

https://www.irs.gov/credits-deductions/individuals/first-time-homebuyer-credit-account-look-up

[Dusty1]

Thanks, Lisa!