With the exception of "pain and suffering" (of which I don't see any of that here), all rental income received for rental property from any source for any reason, is included in the total of all rental income received for the tax year. So it gets included with the amount in the rental income section.
The taxability of that income can be offset by the 'qualified" rental expenses it was used to pay for.
You'll claim your legal fees for this in the rental expenses section in the Miscellaneous Expenses section, which is the very last screen of the rental expenses section. Simply label your legal fees as "legal fees" since that is what they are. Enter the amount, and press on.
