Part ? - Tax Planning* Assume that rather than selling the land to James . John is considering leasing it to him for $ 1 2. 000 annually with the lease beginning on October 1 , 2010 . James would prepay the lease payments through December 3 1. 2010 . Thereafter . he would make monthly lease payments at the beginning of Each month What effect would this have on John's 2010 tax liability ?' What potential problem might John encounter ? Write a letter to John in which You advise him of the tax Consequences of leasing Versus selling. Also prepare a memo for the tax files