Question

Lana operates a real estate appraisal service business in a small town serving local lenders. After noting that lenders must pay to bring in a surveyor from out of town, she completes a course and obtains a surveyor’s license that enables her to provide this service also. She now provides both services as a proprietor. What tax issues should Lana consider?

Answer 1

Refer the below image for the details about the tax issues lana should consider.

Answer Tax consider issues Lana → The principal issue is whether surveying constitutes a new and separate trade (or) business, cor) alternatively, is an extention of the existing trade (or) bosiness. - If it is judged to be a Lana has the opportunity accounting methods than the appraisal activity. new to the trade elect currently cor business, different uses for