We put our names on daughter's deed prior to her death from cancer so house could be sold easier. We received money from the sale which is our inheritance. How do we file this? Only she was on the mortgage.

Daughter had cancer so we added our names to her deed so house could be sold after her death easier.  We were not on the mortgage.  The proceeds we received from the sale were our inheritance from our daughter.  How do we file this?  We did get a 1099-S at closing, but the gross proceeds is not what we actually received after deduction of mortgage and closing costs.  How  do we file?