Thank you VERY much for your reply, @DMarkM1!
I had asked the firm about this situation, and their response (an excerpt of it) was as follows:
"While I am not a tax attorney or accountant, the 1099 S was not issued by our firm because the funds held in our trust were the total distributed by the Estate and not directly from the sale of real property. The 1099-MISC is typically reported as other income for beneficiaries of an Estate and any tax considerations would be based on your individual tax liability."
So the amount issued included half of the proceeds from the sale of my mother's house, plus approximately another $106. So, the lion's share of the money ($88K+) WAS from the sale of real property, wasn't it? In that event, shouldn't they issue a 1099-S for the portion that was a result of the sale of her house, and then a 1099-MISC for the remaining $106? That would make sense to me, but tax laws don't always make sense...
I've contacted the firm again asking exactly that, but I don't know if I actually have any grounds to do so. I just know that if I proceed with the forms I have now, I'm probably on the hook for another $20K of taxes that I otherwise shouldn't have to pay, given the circumstances.
Thanks again for your help, @DMarkM1!
