How do I report a 1099A foreclosure to the IRS with a realized loss because my home was used as my business?

Question

I do my own taxes
Long term gain or loss rule applies

Answer 1

Use Form 4797; Sale of Business Property ( or involuntary conversions). The loss figure from this goes to Sch D and from there to Form 1040.

Answer 2

A loss on the sale of a personal residence is not deductible, even if a portion is used in your business. Once you recapture the depreciation allowed or allowable you might even have a taxable gain depending upon the circumstances.