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.

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Client Testimonials

The recession was hard on me. In 2009 the banks foreclosed a few of my rental properties, than issuing me 1099C's to make the situation even worse. This made my tax liability enormous, as a result I didn't file taxes for a couple of years. I started receiving letters about my unpaid taxes from the government and my job. The accountant I hired in the past really didn't know much about 1099C,,s. That's when I searched the web and found Gary a life saver to say the least, he knew exactly what to do. If I would not have waited three years to file I would not have lost thousands for filing late. I wish I would have found him sooner, the fact that he does taxes in any state is a plus. I truly cant say enough positive things about my experience doing business with Gary. Thanks Again.

Officer D, NYPD

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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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S Corporation CPA discusses 2013 Medicare Tax Avoidance | Form 1120-S

S Corporation CPA Wilmington NC 1120-S

Gary Bode, CPA: an S Corporation can avoid the 2013 additional Medicare Tax. For a free phone consult, call (910) 399-2705.

Any S Corporation CPA will tell you distributions circumvent employment taxes all together. S Corporation distributions are the profit taken after paying the shareholders “reasonable compensation” (formal wages subject to employee and employer payroll taxes), as calculated on the annual 1120-S. I’ve been watching Congress try to close this loophole for decades. But at the moment it’s still there. Why? Surprise, many Congressional folks run their own businesses as S Corporations. Newt Gingrich and John Edwards, for example. So, S Corporations distributions aren’t covered under the “earnings” part of the new Medicare tax described below.

A 0.9% additional Medicare tax looms on the 2013 horizon. Currently Medicare tax is 2.9% on all wages, half from your employer, and half from your paycheck. In 2013, couples earning more than $250,000 per year ($200,000 for an individual) will pay an additional 0.9% on the amount of wages over $250K/$200K. For example a single person making $250K would incur an additional $450 {250,000-200,000) x .0.9%} tax that year.

“Remember your LLC can elect to be taxed as an S-Corporation.” 
– Gary Bode, S Corporation CPA

So, let’s say a husband and wife S Corporation pay themselves $150,000 and distribute $150,000 to themselves in a tax year. All the $150,000 of distributions escapes the Social Security and Medicare tax. An S Corporation CPA would try to structure one spouse’s salary above the annual Social Security threshold to save the (expected) 12.4% of Social Security Tax on that payroll component.

I’m an S Corporation CPA with a virtual/remote office to serve folks beyond my Wilmington NC site. I operate my CPA firm as an S Corporation, so you know I keep up with current developments. There are dozens of S Corporation postings on this website, including the “reasonable compensation” issue mentioned above. Just click “S Corporations” from the drop down category list in the right side bar or 1120-S from the Forms drop down box. For a free phone consult, call (910) 399-2705.

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