Long term real estate loss on schedule E

[Taz]

 I lost a real estate rental in the Houston Hurricane a couple of years ago.  It ended up being about a $100,000 loss when all said and done.  Now it is a long term loss on my taxes I can't seem to use, because the rental property is gone.  Can I convert it to schedule D to start taking a little of it each year? We no longer have the property, and no longer have any rentals?  I'm perplexed as to what my options are if any...  Please help..

[abctax55]

What professional software are you using?

[Taz]

Proseries.  It just seems like I should be able to take these losses somehow. It was a rental property, but I had no choice in loosing it.  The hurricane wiped it out.  The insurance didn't cover it all, and then I had to sell it as is, because I had no money to fix it.  The FEMA money went to the mortgage loan on the rental.

I want to move it to schedule D and take the $3,000 a year income deduction.  At least I get something.  Can I do this, since I no longer have rental property at all?  And since the hurricane took my rental property away?

[abctax55]

All excellent questions for your professional tax preparer.