what type of property? a personal residence that was never rented (thus no depreciation) - no deduction but you still have to report it. In step-by-step mode Turbotax will adjust the info so no loss is allowed.
if it's depreciable property or real property used in a trade or business it gets reported through form 4797. the loss is allowed
if it's investment property it gets reported on form 8949 (which flows to Schedule D) and is a capital loss.
