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 used Gary’s services to file my 2012 income tax return. This was my first year having an accountant do my return, as I have always done it myself using TurboTax. However, this year I had cancelled debt from my old primary residence which I was forced to convert to a rental property after relocating out of state.

While it didn’t cost me anything to do the short sale, the income tax consequence from the cancelled debt, roughly $50,000 in my case, was enough to move me from the 15% tax bracket to the 25% tax bracket.  Needless to say, I was concerned about that.

Finances were already tight and my husband and I are expecting our first child this fall. So the possibility of owing income tax was stressing me out. However, Gary was great at relieving my fears.

He is extremely knowledgeable, answered all my questions and was very thorough. I knew I was in good hands. He kept in constant contact with me throughout the process, keeping me updated on the progress of my return and letting me know what paperwork he needed to complete my filing.

In my mind, best case scenario would have been to not owe any taxes. Second best would be to only owe a little. Well, you can imagine my surprise and delight when Gary told me I was actually due a refund of a little over $2,700.00!

To top it all off, I found Gary’s fee for service to be fair, competitive and affordable; especially given the complexity of this type of return. I am so glad I did not try and go it alone this year. I am extremely pleased with Gary’s service and would recommend him highly to anyone, in fact I already have. If you have cancelled debt from a short sale or foreclosure, don’t freak out. Take a deep breath and call or email Gary. I am grateful I did.

Angie Falke of Holiday, FL

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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Wilmington NC CPA comments on Form 5405 |First Time Homebuyer Credit Repayment Issues

Wilmington NC CPA and tax accountant discusses tax Form 5405

Gary Bode, CPA: If you need a free initial consult on the First Time Homebuyer's Credit, please call us at 399-2705

We’re seeing some interesting problems over repayment of the First Homebuyer Credit on Form 5405.  This Credit morphed more, and faster, than most IRS tax incentives.  The amount went up, then it didn’t require re-payment, and finally, folks who had previously owned houses could join in, albeit for a lesser amount.  All with arbitrary date cutoffs. 

Repayment of the First Homebuyer Credit, if required, presents on tax form 5405 and included with Form 1040 tax preparation.  Of course, there is resentment with folks that actually must repay anything.

Paying it All Back at Once – Ouch!

Ordinarily, repayment, if required, is spread out over 15 years via Form 5405.  But the IRS mandates that if you stop using your home as a primary residence, within three years of purchasing it (which includes selling it, converting it to a rental and losing it in foreclosure) the Credit must be repaid, in it’s entirety, on that year’s tax return.  So, some folks who took the credit with good intentions have to unexpectedly pay back up to $8000, to the IRS, at one time.  Since the First Time Homebuyer’s Credit had income limitations, as one qualification, this repayment is probably a hard blow to anyone affected.

“Some taxpayers got a nice sized tax credit and then lost their home.  Now they have to repay immediately.  An unintended, but nasty, cash flow trap!”
Gary Bode, Wilmington NC CPA and tax accountant

We’ve had examples of folks who inappropriately applied for the Credit.  Form 5405 caused a lot of genuine confusion and subsequent, unintended, traps.  The IRS allowed inappropriate tax returns initially.  Then, once examined, triggered a tax audit via the infamous Notice CP 2000.

We’re a Wilmington NC CPA firm specializing in tax preparation. If you need a free initial consult with a tax accountant, please call us at 399-2705.

Of course we offer other services too besides tax preparation, like financial accounting, QuickBooks training and business consulting.  Please read any of our posts to guage our expertise, proactive attitude and commitment to customer service.  Your CPA really can make a difference.

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