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 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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