Your client, Bob Young, is negotiating a sale of investment real estate for $12 million. Bob believes that the buyer would pay cash of $8 million and a note for $4 million or $3 million cash and a note for $9 million. The notes will pay interest at slightly above the market rate. Bob realizes that the second option involves more risks of collection, but he is willing to accept that risk if the tax benefits of the installment sale are substantial. Write a letter to Bob advising him of the tax consequences of choosing the lower down payment and larger note option, assuming that he has no other installment receivables. Bob's address is 200 Jerdone, Gettysburg, PA 17325.