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 have been using TurboTax for years but encountered an investment situation that TurboTax is not designed to handle. After searching the web for local CPAs/Accountants and chatting with a couple on the phone I was unable to find someone locally with sufficient experience in my particular situation with whom I felt comfortable. Deciding to broaden my search beyond my local area I discovered Gary's website and a detailed discussion with options pertinent to my situation. During a brief phone conversation, Gary answered all of my questions, explained how we would exchange information online and gave me an estimate for preparing my current tax return and an amended return. It was a pleasure working with Gary. He delivered everything he promised with no surprises.

Hank Varno, Purcellville, VA

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 8960, Net Investment Income Tax— Individuals, Estates, and Trusts instructions explained by rental real estate CPA

Rental Real Estate CPA Schedule E Form 8960

Most rental real estate Clients aren’t required to file Form 8960. But maybe it pays to have a rental real estate property CPA that covers all circumstances on Schedule E. (910) 399-2705.

I’m a rental real estate CPA because there are rental properties in my extended family. Sometimes I get new rental property clients because the Schedule E instructions are difficult to understand. Schedule E instructions list 13 additional IRS tax forms you may have to file along with Schedule E, Supplemental Income and Loss. IRS Form 8960, Net Investment Income Tax— Individuals, Estates, and Trusts, new in 2013, is one of those potential additional tax forms.. A few new Clients in 2014 stated their tax software didn’t support Form 8960. Most taxpayers with rental property never use Form 8960, at least for their rental property. Why? Most landlords operate rental property at a loss because of the depreciation allowed.

IRS Form 8960 InstructionsNet Investment Income Tax— Individuals, Estates, and Trusts

Form 8960 spouts 20 pages of instructions filled with acronyms, treasury regulations and odd nomenclature. All for a single page tax form. Even I got bored reading them. Very dry. Form 8960 is a typical IRS tax form:

  • It applies to multiple types of tax returns, in this case the familiar Form 1040 and Form 1041.
  • There are three parts.
  • It also applies to many non rental real estate issues.
  • It first calculates a total income figure.
  • Form 8960 then invokes modification of the total investment income.
  • Finally it chooses the lesser of two separate calculations for the tax due.

IRS Form 8960 InstructionsNet Investment Income Tax— Individuals, Estates, and Trusts  – Part I Investment Income

Part I reports passive income received during the tax year. Rental property profit or loss is considered passive. Rental profit gets reported on line 4a of Form 8960.But taxable interest, royalties, pass through passive income from S Corporations and Partnerships are all included on 4a as well. Then 8960 makes adjustments for certain issues. Finally it renders a Total Investment Income figure on line 8.

IRS Form 8960 InstructionsNet Investment Income Tax— Individuals, Estates, and Trusts  – Part II Investment Expenses Allocable to Investment Income and Modifications

Part II has no bearing on rental property investment income. All modifications already took place on Schedule E.

IRS Form 8960 InstructionsNet Investment Income Tax— Individuals, Estates, and Trusts  – Part III Tax Computations

The tax is 3.8% of the lesser of your rental property profit, assuming you had no other qualifying investment income, or your excess Modified Adjusted Gross Income (MAGI). MAGI requires a calculation but then you get to deduct a threshold amount. Most taxpayers don’t have MAGI after the deduction.

Much of our client base is rental property Folks, usually filing Schedule E to report their rental income and expenses. In 2014, sadly, we still had many rental property short sales, foreclosures, etc., from the Recession. So we dealt with cancelled debt on Form 1099-C by using IRS Form 982, Reduction of Tax Attributes. We handled numerous Form 1099-A(s) as well. Remember 2014 starts the application of new IRS rules on what qualifies as a repair versus a capital expense.

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