If this property is held in your IRA there will not be any reporting to the IRS for any transactions that occur in the IRA.
This is the same for stocks, real estate or almost any investment.
Basically this is similar to if I held a stock that went worthless in my IRA. There is no loss to report, it will just reduce the amount of value in my IRA.
As for all IRA accounts, the trustee will report activity to you for each year on Form 5498 and there is no additional reporting on the individual tax return for the investing activity during the tax year.
Please ask if you need clarification.