As for the last portion of my question, some my future legal expenses might take place in one tax year, while the recovery will take place in the different one. Could I deduct or otherwise use those legal expenses if I don't have gains in that tax year?
Your legal expenses are reported as I stated already, in the tax year the expense is incurred. Any recovery is reported in the tax year it is received. Overall though, I doubt either will affect your tax liability. Your legal expenses will be a SCH A itemized deduction, and your chances of actually collecting back rent are probably slim to none.
