Investments glossary

Form 5405 Explanation

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Form 5405, First-Time Homebuyer Credit and Repayment of the Credit was a tax form distributed by the Internal Revenue Service (IRS) and used by first-time homeowners or long-time residents of a home to claim a tax credit that was available from April 9, 2008, through September 2010. First-time homebuyers applying for the credit could not have owned another home within three years of the new home purchase, and either the purchase price of the home or the homebuyer’s modified adjusted gross income (MAGI) could not exceed a certain threshold. The amount of the credit was the lesser of either a fixed percentage of the home’s purchase price or a fixed dollar value.

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