Form 5405: The 2008 First-Time Homebuyer Credit Repayment and What 2025 Means
Published November 5, 2026
Form 5405 is the Repayment of the First-Time Homebuyer Credit. The current form is the November 2024 revision. The repayment rule has an end date. It expired for homes bought after 2008, and the 15-year repayment for a 2008 home ended with the 2024 return. IRS: Form 5405 (Rev. November 2024)
What happened with 2008 homes
If you bought a home in 2008 and claimed the first-time homebuyer credit, you repaid one-fifteenth of the credit each year. The repayment began with your 2010 return and ended with your 2024 return. The IRS instructions say 2024 is the last year to file Form 5405. IRS: Instructions for Form 5405 (Rev. November 2024)
What this means for your 2025 return
If you still own the 2008 home and it is still your main home, there is no annual repayment for 2025. The repayment period had ended by then. You do not file Form 5405 for that repayment on your 2025 return.
When a repayment can still come due
A repayment can still come due if the home changed hands or stopped being your main home. The instructions say that if you sell your main home, you must repay the remaining credit with the return for the year the sale is completed. The same rule applies if you convert the entire home to business or rental use. If you sold to someone who is not related to you, the repayment is limited to the gain on the sale.
So if you sold, gave away, or converted a 2008 home in 2025, read the instructions and the form before you file. Check the date, the sale, and any gain. Some exceptions apply, such as a home destroyed or condemned, certain military or intelligence orders, and some other cases listed in the instructions.
The lines on Form 5405
Part I asks how the home left your use. Part II sets out the credit you claimed for 2008 and the amount you repaid from 2010 through 2023. Part III is used when there was a sale or other disposition with a gain. Each spouse who must repay files a separate Form 5405 with his or her own name and SSN.
Related reading
If you sold your main home in 2025, read Home sale exclusion basics to see how a sale is reported. The sale rules and the repayment rules are separate questions.
The repayment schedule for 2008 homes
For a home bought in 2008, the credit was repaid over 15 years. The IRS instructions describe this as one-fifteenth of the credit each year. Part II lists the 2008 credit amount on line 4 and the amount repaid from 2010 through 2023 on line 5. The 2024 return was the last year of the schedule.
When the annual repayment stops
The repayment requirement expired for homes purchased after 2008. The 15-year schedule applied only to homes bought in 2008. If you still own your home and still live in it, you have no annual repayment on your 2025 return.
Joint returns and separate forms
If you and your spouse claimed the credit, the instructions say each spouse who meets a repayment condition files a separate Form 5405. Each form has only that spouse's name and SSN, whether you file a joint return or separate returns. Read the instructions for the rules that apply to a joint 2008 return.
Next steps for a 2025 sale of a 2008 home
Gather the 2008 credit amount, the amounts you repaid from 2010 through 2023, and the closing statement for the sale. Those three numbers are the inputs for Part II and Part III. Keep them with the rest of your tax records.
General information, not advice about your situation.
Sources: Sources: IRS, Form 5405 (Rev. November 2024), Repayment of the First-Time Homebuyer Credit (https://www.irs.gov/pub/irs-pdf/f5405.pdf); IRS, Instructions for Form 5405 (Rev. November 2024) (https://www.irs.gov/pub/irs-pdf/i5405.pdf) This is general information, not advice about your specific return.
