Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Filed form 5405 last year after selling home that First Time…

Customer Question
Filed form 5405 last year...
Filed form 5405 last year after selling home that First Time Buyer Loan was on. the irs says that in certain cases the loan doesnt have to be paid back. of the 7500, 2500 was paid back in 2010, 2011, 2012. turbo tax gets an rejection when i file showing i need to add form again. the net basis of home sold was a loss but to get it to go through turbo tax, we should $15 gain. We should not have to do form again?
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 12 minutes by:
3/3/2016
Tax Professional: emc011075, Tax adviser replied 2 years ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,988
Experience: IRS licensed Enrolled Agent and tax instructor
Verified

Hi. My name is ***** ***** I will be happy to help you.

If you sold the home in 2014 and filed the form with your 2014 tax return you don't need to file it with your 2015 tax return. Form 5405 is to inform IRS that the house was sold or otherwise disposed and you are paying off the remaining credit or, if sold with a loss, you are not required to repay it.

Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 2 years ago

Gayle I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

Ask Your Own Tax Question
Customer reply replied 2 years ago
I can't figure how to get turbo tax to accept it as I guess the irs still shows it is owed but there was only a 15 gain shown last year. They gave me a link and when I put the info in it stills show owed amount but I'm sure of the basis etc
Tax Professional: emc011075, Tax adviser replied 2 years ago

Who gave you a link? Turbo tax and IRS do not exchange information. Turbo tax sends return to IRS and IRS accept it or reject it. There's no back and forth info exchange.

I got a message from another expert who is familiar with this issue. The problem seems to be somewhere in between. IRS haven't updated their database and not including the form would reject your return therefore Turbo Tax will not allow you to remove the form so your return will not be rejected. For Turbo Tax it is more important that IRS will accept your return than making sure you get all your refund you are entitled to. As a matter of fact I run into similar situation before when TT would add a tax the client didn't have to pay and there was no way to override it. Don't get me wrong, your return will still be correct and IRS will not have any issue with it. You just don't get back as much as you could (or pay as little as you should). But that's normal for all retail or online tax preparation softwarers, not just turbo tax. Tax preparation softwares designed for tax professionals are more flexible and let you work around those special situations.

Anyway, the only way to fix it and the other expert agreed is to file your return on paper and attach a short explanation and copy of your 2014 5405. Or if you want some of your refund faster, you can file the way Turbo Tax wants to file, get most of your refund and than amend it to get the rest of it. That what we did in 2008 when it took IRS almost 9 month to process returns with the first time home buyer credit (the nonrefundable one).

Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 2 years ago

Any questions? Is there anything else I can help you with today?

And if you found my answers helpful, a Positive Rating would be greatly appreciated. Thank you.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask emc011075 Your Own Question
emc011075
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,988
3,988 Satisfied Customers
Experience: IRS licensed Enrolled Agent and tax instructor

emc011075 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Yes, I purchased a house in 2008 and got first time home buyer
Yes, I purchased a house in 2008 and got first time home buyer credit $7500 ,then sold it in 2014. Do I need to repay the balance of credit? Do I need to file form 5405?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My return got electronically rejected this year because of
My return got electronically rejected this year because of the home buyers credit in 2008. My ex husband and I got a divorce in April 2011 and he was awarded the home. My return is being rejected beca… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a question about irs tax form 5405. My home in Texas
I have a question about irs tax form 5405. My home in Texas was purchased in 2008. I claimed the $7500 home buyer credit (form 5405). I will be relocated from Texas to California (work for same employ… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My wife and I who were not married at the time both have the
My wife and I who were not married at the time both have the $7500 first time home buyer tax credit. The last 2 years I filed us married but filing separate so that we could both make a payment on the… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
My son bought his first home (my husband cosigned so he could
My son bought his first home (my husband cosigned so he could get the loan but never lived there nor claimed any right to the property) in April 2008 and qualified for the first time homebuyer credit … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I got a 1st time home owners loan a couple of years ago. What
I got a 1st time home owners loan a couple of years ago. What happens to that loan if we sell the house? Do I have to pay the balance all back at one time?… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
Tax year 2008 tp received $ 7500 first time home buyer credit.
Tax year 2008 tp received $ 7500 first time home buyer credit. Tax year 2010 home was underwater in value, listed home for sale. TP did start monthly payments of $ 100 per month to apply to repayment … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a tax/real estate law question. I did a Deed-In-Lieu
I have a tax/real estate law question. I did a Deed-In-Lieu on my primary residence in January 2011. Since then SunTrust has been calling me to preserve my home (A Lot too Late in my opinion). In eith… read more
winktax
winktax
Enrolled Agent
Master's Degree
349 satisfied customers
i have already paid back my homebuyers credit in full but turbo
i have already paid back my homebuyers credit in full but turbo tax is still taking out 500. how do i fix this… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I bought a condo in May of 2010. I got the first-time home-buyers
I bought a condo in May of 2010. I got the first-time home-buyers Fed tax credit of $8,000 which was allowed retroactively to my 2009 tax return. I also got a State Tax Credit of $3,333 on my 2010 tax… read more
Tax-Scholar
Tax-Scholar
Senior Associate
Bachelor's Degree
53 satisfied customers
my wife and i claimed the 1st time homebuyer tax credit in
my wife and i claimed the 1st time homebuyer tax credit in '08. we got the full $7500 credit. she moved out in august '09. last year we filed jointly, having not decided whether to divorce. we're stil… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Bought a condo on 2/19/2010, received a 1st Time Home Buyer
Bought a condo on 2/19/2010, received a 1st Time Home Buyer Credit of 10% = $5,500. Sold condo 8/24/2010. Need to send back the $5,500. Bought for $55K, sold for $54K - with expenses. What should I do… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Hello, My wife is a freelance book editor. Last year she
Hello, My wife is a freelance book editor. Last year she took on a project for a certain fee with the caveat that a certain amount would HAVE to be used for stock photography for to be printed in the … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My wife and I had purchased a home in 2008 and received the
My wife and I had purchased a home in 2008 and received the $7500 tax credit that we would have to repay. Last year I filed an individual Chapter 7 Bankruptcy that was discharged and included my mortg… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am filing 1040x to get my first time home owners tax credit.
I am filing 1040x to get my first time home owner's tax credit. The form is 5405 and I see it listed under payements. I don't understand the rest of that section. 11. is Federal income tax withheld . … read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
I bought a new home in Novemeber 2008 and recieved the Bush
I bought a new home in Novemeber 2008 and recieved the Bush $7500 first time home buyers credit. I am going to be transfered for my job. I am not sure if I will be able to ge what I paid for the house… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
I recieved the $7500 frst time homeowners credit applied to
I recieved the $7500 frst time homeowners credit applied to my 2008 tax return. This was the first of the homeowners stimulus plan where the 7500 dollars was to be repaid $500 per year on future tax r… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I hope I picked the right category to ask this question. I
I hope I picked the right category to ask this question. I am in the process of buying a house in pine hill new jersey and am very confused about the 8000 dollar tax credit and how it works. I thought… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x