1031 exchange on an inherited property question

[Susan Rauch]

Hello! Would love any input or info. I inherited a SFR 10 years ago worth $700k. It has been rented since then. I've taken about $180k in depreciation over the years. The house is now worth 1.5 mil and my tenant plans to buy. It looks like state & fed taxes on the sale would be, rough estimate, more than 250k. So I'm researching 1031 exchange. Is the 700k (the value of the home when I inherited) treated the same as the "basis" (if I had purchased the home instead of inheriting it)? Do I have to do an exchange on the full sale price of 1.5m, or is the 700k (inheritance) treated differently? I hope this makes sense and isn't too stupid of a question. Second question. The house is in California, and the exchange will probably be in Fla. should I look for a QI in Fla or California?

[Wayne Brooks]

@Dave Foster can answer your questions for you.