My home short saled last year and I had the 2008 homebuyers tax credit what happens now that we no longer have our house?

[Vanessa]

  You will need to fill out form 5405 in TurboTax to report the sale.  Generally, if the home ceases to be your main home you will need to repay the remaining balance of the credit, however, if you had a loss on the sale there is an exception to that. To enter the sale of your home and fill out form 5405 do the following:

1. Click Federal Taxes
2. Deductions and Credits
3. Scroll down and click Show More next to Your Home
4. Click Start next to Homebuyer Credit Repayment
5. Walkthrough and answer ALL of the questions and TurboTax will determine if you have any amount due or not and complete the form 5405

"If your home was purchased in 2008, all remaining annual installments become due on the return for the year of sale. The repayment is limited to the amount of gain on the sale, if the home is sold to an unrelated taxpayer. If there is no gain or if there is a loss on the sale, the remaining annual installments may be reduced or even eliminated" Homebuyers Credit