Sale of a home is reported on a 1099-S. Since this was a sale of your personal home (or what was intended to be your personal home), the loss is not taxable, but you need to report it. Complete the section in turbotax for "sale of your home" and report the purchase price, date, selling price, and date, and if you sold at a loss, you can't deduct it, but you won't have a taxable gain.
A 1099-R is only used for distributions from a qualified retirement account. If you got a 1099-R, someone probably made a mistake.
