Planning During a Boom
Large projects have brought new money to Brownsville: contracts for local firms, rising property values and offers to buy family businesses and land. Planning helps owners and families make the most of it. BOMCAS provides tax planning for Brownsville clients remotely.
The Texas tax planning page has statewide ideas, and this page applies them to Brownsville owners and families.
Contractors With Large Contracts
Local contractors winning work on the big projects can see income jump in a single year. Accounting methods for long-term contracts, the timing of equipment purchases and retirement plan contributions all affect how much tax that year produces. We project income early in the year so decisions can be made in time.
Selling Land or a Business
Land near the port and along the highways has risen in value, and outside buyers are acquiring local businesses. An installment sale spreads the gain over the years payments are received. A like-kind exchange defers gain on real estate reinvested in other real estate. For a business sale, the allocation among equipment, goodwill and non-compete payments changes the tax.
Family Property in Mexico
Families with houses, land or businesses in Mexico should plan for how they will be taxed in both countries when sold or inherited. Mexican property inherited by a U.S. resident takes a basis equal to its value at death for U.S. purposes. Gifts or inheritances from relatives in Mexico over $100,000 must be reported on Form 3520.
Storm Preparedness
Keeping records of the cost of buildings and improvements, and photographs of property, supports insurance and casualty claims after a hurricane. Owners who receive insurance proceeds above their basis can defer the gain by rebuilding or replacing the property within the allowed time.
Education
Families can save for UTRGV, Texas Southmost College or other schools through 529 plans, and from 2026 can use up to $20,000 a year for K–12 costs. The American opportunity credit covers up to $2,500 a year of college costs for four years.
Retirement
Teachers can use 403(b) and 457 plans, and small business owners SEP, SIMPLE or solo 401(k) plans. Contractors with high-income years can put large amounts into retirement plans to reduce tax.
New Wages, New Savings
Workers earning high wages on the big projects for a few years can use 401(k) plans and IRAs, including Roth accounts, to save part of the money tax efficiently before the projects end. Paying down debt and building emergency funds also matter when the work is temporary.
Passing On a Family Business
Many downtown stores and family firms have been run by the same families for generations. Gifts of shares over time, sales to children on installment and the $15 million estate exemption for 2026 can move the business to the next generation with little or no tax.
Property Tax
School districts must exempt $140,000 of a homestead's value, plus $60,000 for owners 65 or older or disabled. Owners should file homestead exemptions and protest values with Cameron County's appraisal district, especially in areas where values are rising quickly.
Estimated Taxes
Owners whose income rises quickly should raise quarterly estimates to avoid underpayment penalties; paying 110 percent of last year's tax, for higher earners, is a safe harbour.
Our Process
- Review returns and records.
- Project income and tax.
- Compare options.
- Recommend steps.
- Follow up as plans change.
Brownsville Tax Planning Questions
Can I spread the tax on selling my land?
Yes, through an installment sale.
Do I report an inheritance from Mexico?
Yes, on Form 3520 if over $100,000, though it is not taxed.
Can storm insurance gains be deferred?
Yes, by replacing the property within the allowed period.
Is there Texas estate tax?
No.
Talk to BOMCAS About Tax Planning in Brownsville
Plans rely on current books and filed business and personal returns, and are carried out through payroll and purchases with sales tax effects. Fix past filings first and include Mexican property. Statewide guidance on business returns, personal returns, sales and use tax, bookkeeping, payroll, late filing and cross-border tax is on our Texas pages, which all branch from the Texas overview.
Bidding on work at the port, running a store on Elizabeth Street or sorting out income from both sides of the river? Let BOMCAS know what you need and we will explain what we would check first and what a quote involves. Reach us through the contact page or the form below, at 780-667-5250 or at info@bomcas.ca. The Brownsville overview lists every Brownsville service. This page is general information only and is not tailored advice.