Disallowed passive loss on converting rental to personal?

[Kevin S.]

I purchased a property and it was rented for ~4 months, and then I converted it to personal use. The various expenses for that 4 months have created a sizable disallowed passive loss. Two questions:

Do I file a form 4797 for disposing of this business asset? H&R Block software prompts me: "When you stop using a property for income, if you didn't sell the item, you may be able to write off any remaining basis" which then refers me to fill out form 4797. However, the prompting for 4797 all seems to only be if I actually sold the property, not just converted it to personal use?

What happens to my disallowed passive loss? If I was actually selling the property, I would get to recognize and deduct it. Since I'm converting to personal, does it just go poof and disappear never to be seen again?