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 became totally and permanently disabled after a working for 44 years. I returned to college late in life (while working full-time) to fulfill my dream of becoming an RN and at that time found it necessary to secure student loans. Three years after being declared totally and permanently disabled my student loans were discharged. In January 2013 we received a 1099-C form declaring said student loans that were discharged however that amount could be considered as income for 2012. This was a large amount of money and we live on two pensions and social security income.

I started looking on the internet for information regarding 1099-C and felt that this was something that we could not handle alone. I made phone calls locally to a very reputable tax group in a city near us and they said it would cost $500 for an appointment and that they really prefer to do corporate taxes and they referred me to a local person who had worked for them at one time, we called and explained the situation and an appointment was made and then the comment was made that "I will have to do some research on this" and flags immediately went up and we called back and cancelled that appointment. I had been researching the IRSwebsite and every place else I could think of and I was not comfortable doing our own taxes this year. We called another local tax preparer that we had used in the past and made an appointment, however prior to the appointment, while still seeking information regarding our situation,

I came across a website for Gary l. Bode, MSA, CPA, PC in Wilmington, NC. I called Mr. Bodeand explained our situation and asked if he could help. He spoke very knowledgeably regarding the situation and stated that yes; he felt he could help us. As Mr. Bode was in North Carolina and we were in New York I scanned all of our documents including back-up documents for all of our claims and forwarded all to him. Mr. Bode kept in touch with us via email; we have spoken on the telephone several times and have become very comfortable with his knowledge and professionalism. Also, as I am a true "worrier" I have continued looking into information regarding our tax situation and I came upon another web page for Mr. Bode that included testimonials which spoke of his experience with this type of tax situation as it became prevalent during the recession. This reinforced in our minds that we had made the right decision in hiring this person as our tax preparer.

I share all of this as our taxes are now ready to be filed (we do owe tax for 2012 but not the astronomical figure we thought we were facing), and we are confident that they have been prepared with the utmost care by a gentleman who has an excellent working knowledge of the situation we faced and the tax laws that were applicable to said situation.

 

Bill and Carol

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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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Form 8825 CPA advises planning when selling depreciated Rental Property | Schedule E | Capital Gains

Form 8825 CPA discusses rental property sale tax consequences \ Schedule E

Gary Bode, CPA: it pays to calculate your potential Capital Gain if you plan to sell depreciated rental property. (910) 399-2705.

Form 8825 CPAs sometimes see clients get stung on Capital Gains tax when selling their rental property. Why? Recapture of prior depreciation factors into the Capital Gain (Loss) calculation. Happens with Schedule E rental property too of course.

The example below uses a residential piece of rental property. It ignores land and building segrgation, just to keep things simple. Residential rental property uses straight line depreciation with a 27.5 year life. So, every year you get to deduct 1/27.5th of the purchase price as depreciation.

An Example of Capital Gain calculation on the sale of Rental Property on Form 8825 and Schedule E

Let’s say you bought rental property 10 years ago and sold it today:

  • Purchase Price: $275,000.
  • Prior Depreciation: $100,000 [($275,000/27.5 years) x 10 years].
  • Sales Price: $275,000. You broke even right? Not for IRS tax purposes.
  • Capital Gain: $100,000 [$275 sales price – $275 cost + $100 recaptured depreciation] Ouch.
  • Capital Gain tax: $15,000 (but who knows what that will be in 2013).

The Capital Gain tax consequence of selling depreciated rental property sometimes shocks clients. Planning isn’t always straight forward in the Recession.

I’m a Form 8825 CPA with a virtual office to serve you where ever you live. I have dozens of posts on this website on Form 8825 and Schedule E topics. I have extended family that own rental property. So I have to keep current with changing tax regs. We offer a free phone consult. (910) 399-2705.

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