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As the property was inherited - it has so -called "stepped up basis" equals to the fair market value (FMV) of that property at the time the decedent passed away.
So if the decedent passed away in 1994 and the FMV of the property was $650k at that time - that value would be the basis.
In additional - the rental property was depreciated. So we need to apportion that basis between the land - that is not depreciable, and the building. Residential rental is depreciated over 27.5 years. So most of the value is already depreciated.
That actually means - if sold for 5.3 million - the taxable gain will likely be ~$5 million.
He may purchase another rental property and defer (not avoid!) that gain under section 1031 - that is a good plan.
As he plan to defer $4 million and recognize $1 million - that amount will be included into his taxable income.
Let me know if you need help to estimate possible tax liability.