Add the 1099-S as income for sale of other real estate, then land. See Where do I enter Form 1099-S?
If your grandfather is deceased, he no longer owns the house, the inheritors own it. A court should have made a decision by now on who owns the home. If the 1099-S is from your uncle, he is being nice and giving it to you. If it is from those who cut through, it is likely you own part of the property as they are required to pay the owners.
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