Foreclosure when Personal Mortgage and S corp title

[Bryan Sowieja]

I am hoping a tax pro can help with the proper reporting of this foreclosure scenario.

I purchased a duplex and owner occ in 2005 and held title as a single man.

In 2010 I quit claimed title in to an LLC, The loan remained my personal obligation.

2005 purchase and owner occ duplex

2008 duplex becomes full rental

2010 quit claim title in to an LLC

2013 foreclosure on duplex. At the time of foreclosure, title was help by my LLC (taxed as an S corp) and I was personally responsible for the note.

Currently, I have disposed the property from the business on the s corp tax return. The S corp now shows a $170k loss which carries over to my personal return via K1. Is this correct?

I look forward to feedback.