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 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

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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Form 8825 CPA advises planning when selling depreciated Rental Property | Schedule E | Capital Gains

Gary Bode, CPA: it pays to calculate your potential Capital Gain if you plan to sell depreciated rental property. (910) 399-2705.

Form 8825 CPAs sometimes see clients get stung on Capital Gains tax when selling their rental property. Why? Recapture of prior depreciation factors into the Capital Gain (Loss) calculation. Happens with Schedule E rental property too of course.

The example below uses a residential piece of rental property. It ignores land and building segrgation, just to keep things simple. Residential rental property uses straight line depreciation with a 27.5 year life. So, every year you get to deduct 1/27.5th of the purchase price as depreciation.

An Example of Capital Gain calculation on the sale of Rental Property on Form 8825 and Schedule E

Let’s say you bought rental property 10 years ago and sold it today:

  • Purchase Price: $275,000.
  • Prior Depreciation: $100,000 [($275,000/27.5 years) x 10 years].
  • Sales Price: $275,000. You broke even right? Not for IRS tax purposes.
  • Capital Gain: $100,000 [$275 sales price - $275 cost + $100 recaptured depreciation] Ouch.
  • Capital Gain tax: $15,000 (but who knows what that will be in 2013).

The Capital Gain tax consequence of selling depreciated rental property sometimes shocks clients. Planning isn’t always straight forward in the Recession.

I’m a Form 8825 CPA with a virtual office to serve you where ever you live. I have dozens of posts on this website on Form 8825 and Schedule E topics. I have extended family that own rental property. So I have to keep current with changing tax regs. We offer a free phone consult. (910) 399-2705.

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