Inherited property and stepped up basis vs 1031 exchange

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I have a client in California who wants to sell their house to me and keeps mentioning a 1031 exchange, however, she inherited the property in April 2011.  

This house is in bad condition and I'm buying it as a flip, how do I determine her stepped-up basis at the time of inheritance? Will my client use the property's ARV at the time of inheritance as the stepped up basis? If so they may not be subject to capital gains taxes and there will be no need for a 1031 exchange, atleast this is my hope.