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.

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Client Testimonials

Amended Tax Return and IRS Resolution

I was initially worried about picking someone off the internet but your testimonials sold me so I would more than happy to assist and hopefully the next person will be at ease choosing to utilize your services. I am pleased to write you to let you know I received a response from the IRS in response to the schedule C you assisted with filing. They responded saying the information supplied was sufficient and they have closed discrepancy. I spoke with the IRS and they said no tax is due. I asked even though I did make a $400 profit and they said again no tax liability is showing that the case was closed. I just wanted to thank you again for your assistance with this issue.

Jason Stoltz

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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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IRS Form 1065 CPA explains Partnership Distributions: a Form 1065 tax preparation example

Form 1065 CPA explains Partnership property distributions

Gary Bode, CPA: Property distributions to Partners can produce unintended IRS Form 1065 tax consequences. (910) 399-2705.

Form 1065 CPAs urge proactive planning of property distributions to Partners. Why? To avoid unintended tax consequences. Hi, I’m Gary Bode, a Form 1065 CPA with a virtual office to serve your Partnership wherever it is.

“Restructuring a prior year Partnership property distribution may not be possible. Better to proactively consider the tax consequences.” 
Gary Bode, Partnership CPA and Form 1065 tax accountant

An Example: Partnership distribution triggering capital gain from reduced Partner liability

Partner Andrea receives a $35,000 cash distribution from Form 1065 CPA, LLC, a Partnership, in exchange for reducing her percentage in the capital, profit and liabilities from 25% to 15%. Her tax basis in the Partnership is $30,000.

  • So the first $30,000 of the distribution is tax-free and reduces Andrea’s basis to zero.
  • The other $5,000 gets taxed as capital gain. Easy enough.
  • But Form 1065 CPA, LLC  has liabilities of $100,000.
  • Partner Andrea’s share of that Partnership liability decreases from $25,000 to $15,000, reflecting her decreased percentage of partnership liabilities from 25% to 15%.
  • This $10,000 partnership liability reduction becomes a cash distribution to Andrea during IRS Form 1065 tax preparation and then taxed as capital gain on Andrea’s personal IRS Form 1040.

So her total cash distribution from Form 1065 CPA LLC is $45,000, the $35,000 cash and the $10,000 of reduced liability. Ouch!  And $15,000 [$5,000 + $10,000], not just the original $5,000, is taxed as capital gains.

If you need a free initial consult on a Partnership issue, please call us at (910) 399-2705.

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