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 had a 1099-C for about $135,000. My husband didn't have any withholding on Social Security. His employer couldn't withhold due to incompetence. I felt utter dread wash over me. Memories of owing the IRS before were constantly on my mind. I called a local CPA. Besides being clueless, he wanted to charge me for every question I had about insolvency. I looked on line and found little hope of the countless stories of permanently disabled people like myself getting their student loans forgiven only to be asked to pay taxes on it as if it were income.
Somewhere, somehow, I find an article by Gary Bode. I bookmarked it for when it's time to do the actual taxes. With his excellent help in how to do all of this out of a virtual office I get my part of the work done. My questions got answered, for free. I give a retainer, do what I said I did and wait. I hear from Gary. I go into shock! How can this be? Not only do I not owe on the 135,000....Gary itemizes and after paying what was almost nothing in taxes we get $950.00 back! No more hubby doing the taxes online! I will use Gary Bode as long as he will agree to work with me!
It was so easy, no worries, but professional and top notch. I know I have thanked you Gary but I am so grateful. Thank you ever so much again!

Carla Bray

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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