Question: On June 3 0 , 2 0 2 3 , Kelly sold property for $ 2 4 0 , 0 0 0 cash and a

On June 30,2023, Kelly sold property for $240,000 cash and a $960,000 note due on September 30,2024.
The note pays 6% interest, which is equal to the Federal rate. Kelly's cost of the property was $400,000.
She is concemed that Congress may increase the tax rate that will apply for the year when the note is
collected. Kelly's after-tax rate of return on investments is 6%.
What can Kelly do to avoid the expected higher tax rate?
Assuming that Kelly's marginal combined Federal and state tax rate is 25% in 2023, how much would the
tax rates need to increase to make the option identified in part (a) advisable?
On June 30,2023, Kelly sold property for $240,000 cash and a

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