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We prepare most type of tax returns:

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S Corporation.

C Corporation.

Partnership.

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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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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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Rental Property CPA discusses Late Aggregate Election Procedure for the Real Estate Professional Exception | Revenue Procedure 2011-34

rental property CPA in Wilmington NC discusses late aggregate election

Gary Bode, CPA: sometimes a client can be made into a real estate professional. For a free phone consult call 399-2705.

As a rental property CPA, I see landlords who can’t squeeze any tax advantage from their loss producing properties. Mostly because the client’s adjusted gross income (AGI) precludes them from the $25,000 passive loss, small landlord exception. And/or, they have no passive gains to offset. So the next logical step is to check whether the landlord is, or can be made to be, a real estate professional. Material participation is the main criteria here. This post doesn’t address all the IRS wrinkles involved.

What Tax Advantages attach to the Real Estate Professional Exception?

  • You become exempt from the passive activity loss (PAL) rules.
  • All losses, from real estate businesses you materially participate in, can be deducted in the current year.

What is Aggregating?

Sometimes a landlord has to calculate the IRS time requirements, for material participation, using all the properties he/she owns to qualify as a real estate professional. Your rental property CPA then files an Aggregate Election Statement with your tax return. The downside? You can’t pick and choose which properties to aggregate; you have to include them all, which has tax implications.

What about Revenue Procedure 2011-34?

Previously, a late election was addressed through a private letter ruling. Expensive! But now, a landlord meeting specific requirements, can make a late election on an amended return. And have it apply retroactively to a prior year. Very cool! The specific requirements are cut and pasted from Revenue Procedure 2011-34 below.

I’m a rental property CPA with a physical office in Wilmington NC. But the virtual office allows me to offer excellent service to long distance and international clients. For a free phone consult, please call (910) 399-2705.

(1) the taxpayer failed to make an election under § 1.469-9(g) solely because the taxpayer failed to timely meet the requirements in §1.469-9(g);

(2) the taxpayer filed consistently with having made an election under § 1.469-9(g) on any return that would have been affected if the taxpayer had timely made the election. The taxpayer must have filed all required federal income tax returns consistent with the requested aggregation for all of the years including and following the year the taxpayer intends the requested aggregation to be effective and no tax returns containing positions inconsistent with the requested aggregation may have been filed by or with respect to the taxpayer during any of the taxable years;

(3) the taxpayer timely filed each return that would have been affected by the election if it had been timely made. The taxpayer will be treated as having timely filed a required tax or information return if the return is filed within 6 months after its due date, excluding extensions;

(4) the taxpayer has reasonable cause for its failure to meet the requirements in § 1.469-9(g).

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