Let's start with the Duplex, your basis or cost in it will be the fair market value on the date of death. And yes, it is capital gain (due to inherited property). It is reported in the investment sale area as other.
To enter your Investments sold
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button
--------------------
Now for the costs of getting the tenant out. This is a somewhat gray area, as it appears the money given is more than just a month's worth of rent to vacate the property. If it is truly cost to get him out to sell the property and is not a gift, then yes it is a selling expense. Just document what you did and why you did it.
I know from folks that rent, if they have a bad renter they will pay them to leave, even when they have damaged the place just to get them out of there and cut the losses.
