Taxpayer purchases property from seller subject to a $100,000 liability. The exchange takes place on September 15. The taxpayer gives $10,000 cash and a machine with an AB of $1,000 and FMV of $7,000. Property taxes of $3,000 are paid due and payable on 12/31. The seller reimburses the buyer for her share of the property taxes. What is the taxpayer's basis in the property acquired?
