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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Form 1120 CPA discusses Tax Positioning for C Corporations before 2013

Form 1120 CPA discusses C Corporation tax positioning before 2013

Gary Bode, CPA: end of year tax postioning for C Corporations is especially important in 2012. (910) 399-2705.

Most Form 1120 CPAs provide tax positioning advice for C Corporation in December. For example we extrapolate the expected Form 1120 in December and run alternate scenarios for the shareholders. So, here’s a partial list of issues to consider before 2013. You should talk these over with you C Corporation CPA before implementing them. Consider your C Corporation’s unique fact pattern; all tax strategies and positioning need to make overall sense. Taxes are just one part of the big picture.

C Corporation Dividends

Qualified dividends are taxed at 15% now. In 2013, dividends get taxed as ordinary income. Plus they could incur the 3.8% new Medicare tax. Talk to your Form 1120 CPA about taking dividends in 2012. Why? Here’s one potential scenario:

  • Let’s say the C Corporation needs to keep funds for expected expenses for 2013.
  • In this example the C Corporation has no surplus funds for dividends, at least from a conventional perspective.
  • You could take C Corporations dividends on 12/31 and pay the 15%.
  • And then loan the C Corporation those same funds on January 1st, 2013.
  • In some cases this can save 28.4% of tax on the 2012 dividends as it’s repaid as loans in 2013. Yes, 28.4%.

Bye Bye to Bonus Depreciation, Hello to Section 179 Limits

Buying qualified assets in 2012 allows you to deduct the entire price of the asset in 2012, at least up to $139,000. In 2013 it’s $25,000.

Again consult with your Form 1120 CPA to see if accelerated depreciation makes sense given your C Corporation’s circumstances. For example, if the C Corporation finances the asset, accelerated deprecation is fantastic in 2012. But there’s  no deduction except the loan interest in 2013. So, cash flow and financial discipline are considerations.

Hiring a Vet

The Wounded Warrior and Returning Heroes Work Opportunity Tax Credits (WOTC) end in 2012. If you’ll need an employee in 2013 consider hiring a Vet in 2012. You’ll get part of the WOTC on the 2012 Form 1120, and rest on the 2013 Form 1120.

Consult with your CPA first. There’s a cash flow trap. Most folks think WOTCs are directly deductible during the payroll cycle. Not true. You pay full employment taxes with ongoing payroll. Later you claim the WOTC as a General Business credit on Form 1120.

We’re a proactive CPA with a virtual office to serve your C Corporation wherever it’s located. If you don’t have a Form 1120 CPA, or just like what you read, call (910) 399-2705 for a free phone consult.

 

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