Discuss the land for the project and wants

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Please provide a 450-word answer to the below stated question with an emphasis on taxes as this question comes from an advance federal taxation class. Provide the answer in a Word Format. Thank you.

Your friends plan to form a corporation for purposes of constructing a shopping center. Charlie will be contributing the land for the project and wants more security than shareholder status provides. He is contemplating two possibilities: receive corporate bonds for his land, or take out a mortgage on the land before transferring it to the corporation. Comment on the choices Charlie is considering. What alternatives can you suggest?

When discussing this with Charlie, he also brought up the issue of deductible net operating losses. Please explain how Net Operating Losses are handled for a corporation.

Follow up by responding to your classmate's suggestions and discussing general shareholder risk.

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Instructions: Your initial response should be at least 450-words with at least one scholarly journal reference. Support your main response with at least 1 scholarly journal reference in addition to the course materials. Please note Wikipedia, Investopedia and similar websites are not credible academic references. Use the Online Library to research credible references.

Reference no: EM131771205

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