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We prepare most type of tax returns:


S Corporation.

C Corporation.




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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

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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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Tax Accountant says Tax Rates may not be Finalized until 2011

Wilmington CPA firm and tax accountant offers IRS Form 1040 tax preparation

Gary Bode, CPA: If you'd like a free initial consult on Form 1040 tax preparation and strategy, please consider calling us at (910) 399-2705

Form 1040 tax rates for 2010 may not be available before January of 2011.  Update – Actually they were passed on Dec 17th!  So late the IRS was caught with its systems down.  Tax filing in 2011 will be be delayed until mid to late February for millions of taxpayers.

Ouch!  Which has made last quarter tax planning difficult for clients.  It may also temporarily impede 2011 tax preparation.  Three distinct tax rate plans have been widely discussed, and no resolution this late in the tax year is unusual.  For more info, please read our previous post on President Obama’s proposed tax rates, which include tax scenario examples.

If you’d like a free initial consult with a tax accountant in a Wilmington NC CPA firm, please consider calling us at (910) 399-2705.  We feel accurate tax preparation of this year’s Form 1040 is only the first step.  Tax positioning, to pay the least amount of taxes in the future is always a goal with us.

Some background on taxable income and progressive/aggregate tax rates follow.

Basic Steps in IRS Form 1040 Tax Preparation:  Gross Income isn’t all Taxable Income

  • Gross Income.  Here your income from all sources is collected and totaled.
  • Adjustments.  Allowable adjustments are deducted from Gross Income.  Common examples include Moving Expenses, one half of any Self Employment tax and IRA contributions.
  • Standard or Itemized Deduction:  this further reduces Adjusted Gross Income.
  • Exemptions: deductions for yourself, spouse and dependents.
  • Taxable Income: what’s left of gross income after whittling it down from every legitimate angle.  So, taxable income is always lower than gross income.

Progressive Tax Rates vs. Aggregate Rates

The IRS uses a progressive tax rate system IE the last part of your income is taxed at a higher rate than the first part.  Here’s an example from 2009:

  • 10%, up to $8,375 of taxable income.
  • Then 15% on taxable income of $8,376 to $34,000. 
  • Then 25% from $34,001 to $82,400. 
  • Then 28% from $82,401 to $171, 850. 

The progressive tax rates make it harder to discuss tax strategy.  So sometimes CPAs and tax accountants use an aggregate rate that calculates in all the progressive rates for a relevant range of income.  Just as an example, if President Obama allows the highest progressive rate of 39.6% to return, the aggregate rate would be 32.4%

IRS tax regulations are changing faster than ever, making tax planning and positioning more dynamic.  We remain committed to helping clients pay the least amount of taxes through legitimate planning and application of all tax strategies.  If you’d like a free initial consult with a Wilmington NC CPA firm who believes in tax planning, please consider calling us at (910) 399-2705.

1 comment to Tax Accountant says Tax Rates may not be Finalized until 2011

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