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

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

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.

Pay Your CPA

Enter $ Below



Other Amount:



Your Email Address :



Divorce CPA discusses Form 8332 | differences between Civil Courts and the IRS

Divorce CPA discusses Form 8332

Gary Bode, CPA: proactive attention to tax consequences during divorce makes sense. For a free phone consult call (910) 399-2705.

Civil Courts sometimes set up tax sensitive financial arrangements during divorce that can’t be implemented through the IRS. I think this happens more often with middle and low-income groups. Wealthier folks get pricier attorneys, who then engage a divorce CPA for proactive integration of tax consequences into the divorce settlement. While some of these tax issues lend themselves to post divorce cooperation, surprise surprise, that isn’t always possible. I think it’s better to nail down all the loose ends ASAP to help folks move along with their lives. Loose ends just lead to more civil snivel that only helps the lawyers. Can you tell I’ve been divorced?

Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, is a good example. Form 8332 allows a non-custodial to claim a child’s exemption and, subsequently the Child Tax Credit. When this isn’t part of the Divorce decree, it’s difficult to get the custodial parent to sign it. Here’s part of the problem. The exemption looks like it’s worth $3800 (expected in 2012). But this is $3800 of gross income. The actual cash value, depending on your marginal federal tax rate, might only be $540. But I’ve seen folks swallow that $3800 figure and fight hard for it.

Form 8332 can’t be used to claim the Dependent Care tax credit. Yet Accounting Today featured an article where the parents ended back in Civil Court because the intent of the Divorce decree simply couldn’t be achieved through the IRS, legally at least. The intent was for the parents to split child care expenses. But of course, only the custodial parent could use the Dependent Care tax credit. The decision? Civil Court upheld the financial arrangement despite the tax consequences favoring the custodial parent, probably by thousands of dollars per year.

I’m a divorce CPA with a virtual office to serve clients and attorneys beyond my Wilmington NC based offices. Please click the Divorce category in the drop down box in the right sidebar to read my other divorce postings. Sometimes proactive attention to tax details during divorce really matters. For a free phone consult please call (910) 399-2705.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>