I owned and personally lived in a condo for two years and then moved out and converted it into a rental property. I had the condo for a rental property for about three years and sold it this year. I am not sure if it would be considered a 1245 or a 1250 property on Form 4797???

Also I have a net loss on the condo but my tax software is calculating this net loss in Part III of form 4797....the gains section of the form....is this correct??? It then transfers this loss ($8957) information to parts I and II of 4797 and later to the 1040 line 14. Can I deduct all of that this year or is there a limit to what I can deduct and the rest gets rolled over....if so what is that limit?

Any help would be greatly appreciated!!! I have been reading different IRS publications for about two hours now and still cannot find the answers to my questions.