@VDR wrote:
That was cheerful. But I'll keep my fingers crossed.
Here is more bad news. If you dispose of the rental and report any income you recover as miscellaneous income, your miscellaneous expenses in collecting that income are no longer deductible (including legal fees).
See https://www.irs.gov/instructions/i1040sca#en_US_2021_publink53061xd0e1967
See also https://www.irs.gov/publications/p529#en_US_202012_publink10004393
Miscellaneous itemized deductions were basically eliminated by tax reform (the TCJA).
