I think TT does handle it properly. If you enter it in the investment section (not in the sale of home section). You indicate the sale was not reported on a 1099-B. TT asks the usual questions - date of sale, date of purchase, sales price, basis, etc. You will come to a screen:
Select Any Less Common Adjustments That Apply.
Check the Box "Any loss from this sale is not deductible...", and the radio button "This is personal use property".
That should do it.
