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

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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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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