Dr$.$ John Doe $($Dr$.$ DOE$)$ has been a medical doctor for the last $20$ years. Since $2002,$ Dr$.$ DOE had his own medical practice $($the Practice$).$ The Practice uses the cash$-$basis accounting method and operates as a sole proprietorship. According to Dr$.$ DOE's last income tax filings, the Practice had several business assets $($details below$).$ In $2021,$ Dr$.$ DOE decided to retire from medicine to pursue a career as a long haul trucker. In $2021,$ Dr$.$ DOE sold the Practice and all of its assets to a physician group for $$3,000,000($$$2,500,000$ in cash and a short term note for $$500,000).$ The note will be paid over $13$ months $(12$ months in $2022$ and $1$ month in $2023).$ The first payment in $2022$ will be an interest only payment of $$25,000.$ All other payments are principle only. Dr$.$ DOE would like to invest the cash proceeds from the sale in: $1)$ commercial real estate; and $2)$ machinery and equipment for his new trucking business. The remaining funds will be used as working capital for Dr$.$ DOE's new trucking business and for personal expenses.