Question on 1031 Exchange

[Lauren Cutchen]

I have a client who was gifted two residential lots that are prime real estate in California. The two lots have their own separate tax IDs and property taxes. She lives adjacent to the lots, but are fenced off. She has been approached by investors wanting to purchase for over $1M each. The question is, can she sell those lots and put into a 1031 exchange? I'm unclear if they would qualify by the way it was acquired. They were gifted to her as part of an inheritance. Secondly, being lots, can she do a 1031 exchange and purchase more investment properties? Does anyone know of the step-up tax she might have to pay? She's discussing with a CPA, but he is not helpful at this time.