Borat had his own business in marketing and was extremely successful. He sold his business 3 weeks ago to his son Bonzo for $10,000,000 using a self-canceling installment note (SCIN). The terms of the agreement are: 20% down payment, 10-year, 4.5% note that will start paying quarterly installment payments on April 1, 2016. What are the quarterly payments? Borat would like to know how the down payment and 1st installment for the sale of his business will be treated for tax purposes. The business was sold 3 weeks ago to his son for $10,000,000. The terms of the agreement are: 20% down payment, 10-year, 4.5% note that will start paying quarterly on April 1, 2016. The tax basis is $4,245,000. Calculate the tax treatment realized on the down payment: Down Payment $0 Less: Return of Basis - Realized & Recognized Long-Term Capital Gain $0 Calculate the tax treatment realized on the 1st installment payment (round to the nearest dollar): Installment Payment $0 Less: Interest Income - Net $0 Less: Return of Basis -