How do you knockout a logo (line art) from a photo with InDesign?

Far better off doing that in Photoshop. Even better would be getting the original vector artwork.

What is your logo file format? EPS? AI?

You want the logo fill to be white, not the current design and colour? I would suggest loading the logo in Illustrator, setting all colour to white and save that logo file to a new file. You can place the (new) logo over any element you want. Be sure to place the logo with "Transparent Background" for the import options.

Why won’t you be able to do resize/reposition?

And no, InDesign is not Photoshop and that’s where you should be doing this.

No, there is no solution to that, except doing it in Photoshop. Cut out the Logo in your jpeg-file. Store the cut-out on a Photoshop layer. You may use the original file, but make sure to store it either as a layered TIFF or PSD File. Import that file instead of the original JPEG.

You have anyhow the problem to reposition the Logo, except if you have the picture file without the logo or you can recreate the data behind the logo. Don't forget: a JPEG picture is a flat 2D structure.

nB. No solution: That's not quite correct: you can outline the logo using the drawing tools of InDesign, but that will not be a practical solution.

If the color mode on the jpeg is set to Bitmap or grayscale (as it most likely should be for line art), you can direct select the image and set the fill color to Paper and it will knock out.