Where and how can we recover the 2019 tax that we paid on income which is now the responsibility of the buyer?
It's a miscellaneous expense in the rental expenses section of your 2020 SCH E.
How and where should we enter the deduction for the reported 2020 rental income?
On the SCH E. It gets included in the total amount you report in the rental income section. The fact the property was rented zero days in 2020 is perfectly fine.
WARNING! What ever you do, *DO* *NOT* select the option for "I did not rent or attempt to rent this property in 2020". If you select that option, you will be forced to delete the SCH E and you will lose all of your depreciation history, and your carry over losses (if any) on the form 4797.
