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We prepare most type of tax returns:


S Corporation.

C Corporation.




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Click here to watch some of our clients in their video testimonials!

Client Testimonials

When my business partner and I found ourselves in a land investment that was abandoned by the developers, we had no reasonable economic choice but to walk away from our mortgage loan.  While we understood that there would likely be tax consequences, the magnitude of our exposure was not fully anticipated.  Thankfully, Mr. Bode was able to work with us to strategize a defensible tax position and mitigate the tax implications of our investment loan abandonment.  I would recommend that anyone facing an investment loss that has tax implications due to debt forgiveness give Gary a call.  It is always best to fully understand the circumstances and the tax rules and related options before paying a hefty bill.  Thanks Gary!

Brian D. - CPA

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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C Corporation CPA discusses 2012 Dividend Strategy | Form 1120

I’m a C Corporation CPA with a virtual office to accommodate long distance clients. This 2012 C Corporation dividend strategy is complex and deserves consultation with your CPA.

No one really knows what C Corporation tax changes will take place for 2013. At the moment, it looks like C Corporation dividends will get taxed as ordinary income to the Shareholder. So, instead of the current 15%, it could be 39.6%. Let’s further assume you’re lucky enough to pay the additional new 3.8% Medicare tax on investment income. This brings the potential federal tax rate up to 43.4%.

“Tax preparation for Form 1120 should start long before tax season. Potential double taxation means balancing the AET, shareholder-employee compensation and dividends.”
– Gary Bode, C Corporation CPA and Form 1120 tax accountant

Just as an example, let’s assume overall tax positioning and corporate cash flow allow the C Corporation to distribute $10,000 to a shareholder. The shareholder takes a $1500 tax hit in 2012. Left in E&P, that same $10,000 could incur $3,960 in 2013, depending on the marginal tax rate of the shareholder. Let’s add the potential Medicare additional tax of $380. That’s potentially $4,340 of federal tax on a $10,000 dividend! $2,840 over 2012 (as it stands at the time of this post).

So, to the extent of C Corporation E&P, and financial prudence, consider being ready to pay dividends in 2012, at a 15% federal tax rate, in case higher rates apply in 2013.

If you don’t have a C Corporation CPA, or just like what you read here, consider calling (910) 399-2705 for a free phone consult. Our virtual office means distance is not a factor for providing services.


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