No, you will not be itemizing. The sale of a capital asset, including your home is filed on Schedule D and has nothing to do with itemized deductions on Schedule A
You cannot claim a loss on the sale of your home. But you also do not have to claim a capital gain of less that ($250,000 ($500,000 Married), on the sale, if you lived in the home, as your principal residence, for at least 2 out of the 5 years. prior to sale
