If you had unused capital losses in 2019, you can carry them over to subsequent tax years to offset capital gains (or, with limitations, ordinary income).

See What is a capital loss carryover? for an explanation of the capital loss carry-over process and links on how to enter them in your return. If you used TurboTax in 2019, unused losses would automatically carryover to your 2020 return.

@Maverick67 Was this property used for rental purposes? 

Yes. It was a commercial bar, rented for 20 years

@Maverick67 

Were you taking depreciation deductions each year?

It would be somewhat unusual for rental real estate to show a loss from a sale after having been owned and depreciated for 20 years since depreciation deductions reduce your basis in the property.

Thank you. I was thinking it should carry forward too, but it isnt. The deduction shows on 2019's form 4797 as a 78k loss. This was then applied to the 1040 line 7a giving me negative income in 2019. 

Turbotax asks about nonrecaptured 1231 loses and when I fill in the carryover, it says it doesn't apply to anything.

Am I missing something?

There was a freak storm that collapsed the roof. The building was condemned and sold basically for the real estate. It netted in a loss. It looks like the loss was all applied to 2019 returns, netting me negative income. I have read confusing information on if the remaining loss (the negative income part) is able to be carried over to 2020.

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@Maverick67 wrote:

This was then applied to the 1040 line 7a giving me negative income in 2019...Am I missing something?

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Yes. The sale of business property (here property held for rental use) can generate a net operating loss (NOL) if the property is actually sold at a loss.

You should determine whether or not you had an NOL for 2019 (note that TurboTax does not support the calculation of an NOL).

See https://www.irs.gov/publications/p536#en_US_2020_publink1000177318

Thanks Champ!

I used the link you sent to calculate the NOL. Is there some way to enter this figure in turbotax? 

@Maverick67 

You would enter the NOL in the Less Common Business Situations section (click the Start or Update button to the right of Net Operating Loss/QBI Carryforward Loss).