1099-MISC Gift/Stock Sale
In 2000, my kids received a gift of private stock shares from my brother-in-law. Basically since then the stock has been worthless, until 2014. The company settled some lawsuits and decided to buy back all the private shares. The kids received between $8,000 to $10,000 payments from the company. The company has issued them all 1099-MISC with the amounts listed under Other Income.
Just wondering if this is should be considered a "gift" or a stock sale instead of being declared on a 1099-MISC?
Any input would be greatly appreciated!