Captail gains tax/loss?

The situation: there are 4 nephews as heirs in an estate consisting of a $200,000 house and $300,000 in cash. We are all in agreement that 1 nephew can take the house without buying out the interest of the other 3. The other 3 nephews will each get $100,000 in cash.

The question: does the person who takes the house have to pay state tax on $200,000 or the 1/4 share he should have had? we are in nj. Also will the nephew taking the house have to pay federal capital gains tax? Can the nephew's taking the cash take a federal capital gains deduction or loss?

You had better speak to the lawyer who's probating the Estate. Why would 3 people take $100 k each when they are entitled to $125k ?

What does the will of the deceased provide ?

There will be no Federal Capital gains/losses on inheieted property. Basis is FMV at date of death.