You need to go back to that screen and re-read it. When it is converted to a rental, you enter the number of personal days AFTER it was converted to a rental. So you should enter ZERO personal days.
That should fix the problem, and the program with either allow the loss or carry it forward on Form 8582. If you "actively participate" in the rental (which almost everybody does) and your total income is under $100,000, it should allow the loss on the current year tax return (up to $25,000).
