The cost basis of a given property does not include liabilities payable to the seller by the buyer because no cash changes hands.

Name: The cost basis of a given property does not include liabilities payable to the seller by the buyer because no cash changes hands.
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Question

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The cost basis of a property includes the purchase price plus any liabilities assumed by the buyer, as these liabilities represent part of the total consideration given for the property.

The Cost Basis of a Given Property Does Not Include