It depends. If you paid the entire penalty up front, you can deduct the entire amount as a 2020 rental expense. Otherwise spread the amount over the life of the loan.
If you deduct the entire amount, enter it has mortgage interest. You do not need a 1098 to enter mortgage interest from a rental.
If you are amortizing the prepayment penalty, enter the amount in Assets/ Depreciation as Intangibles, Other property.
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