We Prepare Tax Returns!

We prepare most type of tax returns:

Individual. 

S Corporation.

C Corporation.

Partnership.

Payroll.

Amended.

Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

Client Video Testimonials

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

Client Testimonials

I used Gary’s services to file my 2012 income tax return. This was my first year having an accountant do my return, as I have always done it myself using TurboTax. However, this year I had cancelled debt from my old primary residence which I was forced to convert to a rental property after relocating out of state.

While it didn’t cost me anything to do the short sale, the income tax consequence from the cancelled debt, roughly $50,000 in my case, was enough to move me from the 15% tax bracket to the 25% tax bracket.  Needless to say, I was concerned about that.

Finances were already tight and my husband and I are expecting our first child this fall. So the possibility of owing income tax was stressing me out. However, Gary was great at relieving my fears.

He is extremely knowledgeable, answered all my questions and was very thorough. I knew I was in good hands. He kept in constant contact with me throughout the process, keeping me updated on the progress of my return and letting me know what paperwork he needed to complete my filing.

In my mind, best case scenario would have been to not owe any taxes. Second best would be to only owe a little. Well, you can imagine my surprise and delight when Gary told me I was actually due a refund of a little over $2,700.00!

To top it all off, I found Gary’s fee for service to be fair, competitive and affordable; especially given the complexity of this type of return. I am so glad I did not try and go it alone this year. I am extremely pleased with Gary’s service and would recommend him highly to anyone, in fact I already have. If you have cancelled debt from a short sale or foreclosure, don’t freak out. Take a deep breath and call or email Gary. I am grateful I did.

Angie Falke of Holiday, FL

Free Consult

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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