Planning for Peaks and Cycles
Arlington businesses face uneven income: event companies earn most of their revenue in a few months, suppliers follow the auto industry's model years and hotels depend on the sports and concert calendar. Planning helps smooth tax payments and make the best of good years. Texas has no income tax, so the focus is on federal taxes, the franchise tax and property tax. BOMCAS works on these plans remotely.
The Texas tax planning page covers statewide strategies, and this one deals with Arlington's cycles and peaks.
Supplier Expansion
Suppliers that win new work for the Arlington plant often need equipment, buildings and staff quickly. Bonus depreciation and Section 179 can allow much of the cost of equipment to be deducted in the first year, but the timing should match the income it will produce. Cost segregation on new buildings and local incentive agreements with Arlington or other cities can also reduce tax. We model the effect of each choice before major purchases.
Event Businesses
Owners of event businesses with irregular income need estimated payments that reflect actual earnings. Choosing the right entity type, such as an S corporation with a reasonable salary, can reduce self-employment tax. Retirement plans, including Solo 401(k)s or SEP-IRAs, allow larger contributions in strong years. Bunching purchases and bonuses into high-income years can also help.
Hotel and Real Estate Investment
Investors in hotels and rental properties near the entertainment district should plan for depreciation, cost segregation, passive loss rules and eventual sales. Section 1031 exchanges defer gain when one property is exchanged for another. Hotels in the improvement district pay assessments that are deductible business expenses.
Planning for the World Cup and Major Events
AT&T Stadium hosted matches of the 2026 FIFA World Cup, and the city regularly hosts championships and concerts that bring short bursts of revenue. Businesses that expanded for these events should plan for the following year, when revenue may fall back, and consider whether equipment bought for one event should be depreciated or sold.
GM Retirement
Workers retiring from the Arlington plant choose between pension payment options, decide when to start Social Security and roll over 401(k) balances. A lump sum taken from a pension or 401(k) is taxable unless rolled into an IRA, and withdrawals before 59½ may carry a penalty, with an exception for workers who leave their employer in or after the year they turn 55.
Homeowners
Arlington homeowners can reduce property tax by applying for the homestead exemption, the over-65 exemption and protesting values with the Tarrant Appraisal District by May 15. The school tax ceiling for older homeowners freezes school taxes at the level of the year they qualify.
Selling a Business
Founders of Arlington event, supplier and service businesses who plan to sell should start well before a buyer appears. Clean books, a clear structure and a decision on asset versus stock sale shape the tax result. The allocation of price among equipment, goodwill and non-compete agreements decides how much is capital gain. Installment sales can spread gain over several years, and an S corporation may face built-in gains tax if it recently converted.
Student Rentals
Many investors own houses and small apartment buildings rented to UTA students. Planning covers depreciation, repairs versus improvements, the passive loss limits and whether a property manager's involvement affects material participation. Owners who sell after years of depreciation should plan for recapture.
What a Plan Covers
- Equipment and building purchases.
- Entity type and owner pay.
- Estimated payments.
- Real estate and hotel investment.
- Retirement and property tax.
Arlington Tax Planning Questions
Should an event business be an S corporation?
Often, if profits are steady enough to support a reasonable salary. We compare the savings with the costs.
Can I withdraw from my 401(k) at 55 without penalty?
Yes, if you leave your employer in or after the year you turn 55, for that employer's plan.
Is bonus depreciation available for new equipment?
Yes, under current rules for qualifying property, though state and timing considerations apply.
How can I lower my Arlington property tax?
Apply for all exemptions you qualify for and protest your value by May 15.
Talk to BOMCAS About Tax Planning in Arlington
Good planning starts with accurate books and filed business and personal returns. Plans are carried out through payroll and purchases that affect use tax. Clear old balances first, and include foreign interests. Statewide detail is on our Texas pages on company returns, household returns, sales and use tax, monthly bookkeeping, payroll and TWC, late filings and cross-border matters, with a summary in the Texas overview.
Send BOMCAS a short note about your Arlington business or household and we will reply with what we would look at first and what we need for a quote. Use the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. All Arlington services are listed on the Arlington overview. This page is general information, not advice for your situation.