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We prepare most type of tax returns:


S Corporation.

C Corporation.




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 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

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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 the 2013 3.8% Investment tax on Rental Profit from Form 8825 and Schedule E | another passive activity rental property issue

Form 8825 CPA rental property Schedule E net investment tax

The 2013 3.8% Net Investment Tax doesn’t affect many rental property owners. (910) 399-2705.

Rental Property CPAs starting fielding questions about the 3.8% Investment tax last year. Why?

  • The Net Investment Income definition includes rent.
  • The tax is new for 2013 and public misconceptions exist.
  • The calculations are what you’d expect; murky.

Net Investment Tax Basics

  • Many Form 8825 and Schedule E rental property Clients won’t be affected.
  • Many rental property Clients can still deduct up to $25,000 of rental property loss under the passive activity exclusion.
  • The tax takes effect only when you reach a modified adjusted gross income (MAGI) of $200,000 for a single person.
  • Rental property owners who meet the real estate professional guideline are not directly affected.
  • The 3.8% Investment Tax may not apply to all of your rental property profit.

“Most rental property owners won’t be affected by the new 3.8% tax. But it may add another layer of complexity for proactive tax positioning.”
– Gary Bode, rental property CPA and Form 8825 tax accountant.


  • Mark is single and earns $175,000 in wages during 2013.
  • He has rental property profit reported on Schedule E of $30,000.
  • This makes his MAGI $205,000 for 2013; $175,000 + $30,000.
  • He pays the 3.8% tax on the smaller of his:
    • Net investment income (the $30,000 of rental property income).
    • MAGI less the threshold for single taxpayers; $205,000 less $200,000 threshold = $5,000.
  • The additional tax is 3.8% x $5,000 = $190.

Rental Property Planning

  • Ask your rental property CPA to extrapolate your 2013 net investment tax based on your 2012 tax figures and known changes for 2013.
  • The net investment tax also affects the sale of rental property.

I’m a rental property CPA because I have rental property in my extended family. So I have to stay current on rental property and passive activity issues. My virtual office allows me serve you wherever your rental property is located. (910) 399-2705.

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