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14) Teresa is considering contribution 900,000 to the capital of Beige inc, a C corporation. A business acquaintance suggests that, instead, she should invest only

14) Teresa is considering contribution 900,000 to the capital of Beige inc, a C corporation. A business acquaintance suggests that, instead, she should invest only 600,000 in capital and lend the 300,000 balance to the corporation. The investors rate on the loan would be the federal rate of 5.5% Are there any Tax benefits to this advice? Any tax pitfalls? Explain

15) Is it possible to permanently avoid double taxation of a c corporation by never making distributions to a shareholder?

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