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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

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

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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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LLC CPA discusses Partnership Mergers | Form 1065

LLC CPA discusses partnership merger for Form 1065

Gary Bode, CPA: structure your LLC merger correctly and it's non-taxable. (910) 399-2705.

Two types of Partnership mergers exist, nicknamed “assets over” and “assets up.” The IRS default is the assets over type, so I’ll define that here with a simple example. I think most LLC CPAs deal with this issue.

Assets Over type of Partnership Merger

Here, a target partnership (AB LLC) transfers all of its assets to an acquiring partnership (XY LLC) in exchange for a partnership interest of the acquiring partnership. AB LLC then dissolves.

Any Tax Consequences?

A true asset over type of partnership merger is non-taxable. The tax basis of each partner changes, of course.

An example of the Assets Over type of Partnership Merger

AB LLC merges with XY LLC by transferring its assets to XY LLC in exchange for 40% interest in XY LLC, renamed ABXY LLC for this example. AB LLC dissolves and files a short year, final Form 1065. ABXY LLC files using the same tax year as XY LLC.

Let’s look at how Partner A and Partner B’s tax basis changes because of the merger. Their tax basis in AB LLC was each $10,000. AB LLC’s assets had a basis of $60,000 and a Fair Market Value of $200,000 at the time of the merger. And AB LLC had $40,000 of liabilities. XY LLC had $240,000 FMV of assets with no liabilities.

  • Partners A and B each own 20% of ABXY LLC (40% /2).
  • Partners A and B’s tax basis in AB LLC debt, transferred to ABXY LLC, was each $20,000 (40/2).
  • Partners A and B’s tax basis in ABXY LLC debt is now each $8,000 (20% x 40,000).
  • Partners A and B’s tax basis in ABXY LLC is now each $18,000 [(60/2)-20+8].

I’m a Form 1065 LLC CPA with a virtual office to accommodate long distance clients beyond my Wilmington, NC locale. If you don’t have a local Form 1065 CPA, consider calling for a free phone consult at (910) 399-2705.

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