We inherited some land in Tennessee and sold it recently. We split it between us 7 children. Listed for $220K , sold for $190K. Is it subject to capital gains tax?

We got half of the 190K (the other half went to my aunt).  Our half we split 7 ways.  

I live in California.  I was told by my sisters that their tax consultant told them that it is not subject to capital gains tax since it sold at a 'loss' (i.e. lower than the listed/valued price.)  Is that correct?  If I need to report it as 'income' to be taxed, how should I report it? Do I need to report it for taxes? Thank you.