Planning in Dallas
Many Dallas clients come to us with one large decision ahead: when to move, when to sell, how to give or how to hand a business to the next generation. Texas has no income tax and no estate tax, which makes Dallas attractive for those decisions, but the federal rules and the state they came from still shape the outcome. BOMCAS works with Dallas families and business owners on these plans remotely, alongside their attorneys and investment advisers.
General Texas strategies appear on our Texas tax planning page; this page is about moves, start-ups and wealth in Dallas.
Timing a Move From a High-Tax State
A gain realised after becoming a Texas resident is not taxed by the former state, unless it is tied to that state, such as real estate located there or, in some states, compensation earned there. That makes the date of the move important for anyone planning to sell a business, exercise options or sell investments. A move made only on paper, while the family, home and business stay behind, will not hold up in an audit. We plan the order of events with the client's advisers.
Founder Stock and QSBS
Founders and early investors in Dallas start-ups may qualify for the qualified small business stock exclusion on the sale of C corporation shares. For stock issued after July 4, 2025, half of the gain can be excluded after three years, three quarters after four and all of it after five, up to $15 million or ten times basis per company. The company must meet the requirements when the stock is issued and during most of the holding period, so planning starts at formation.
Real Estate Owners
Dallas investors use cost segregation to speed up depreciation, like-kind exchanges to defer gain when they trade properties and installment sales to spread gain over several years. Each has drawbacks: exchanges have strict timelines, and fast depreciation is recaptured on sale. We model the expected holding period before choosing.
Giving and Family Wealth
Gifts of appreciated stock, donor-advised funds, charitable remainder trusts and private foundations are common in Dallas. Annual exclusion gifts to children and grandchildren and larger lifetime gifts can move future growth out of an estate. Texas community property means each spouse owns half of most assets acquired during marriage, and both halves generally receive a new basis when the first spouse dies. That can make holding appreciated assets until death more valuable than gifting them.
Business Owners
For owners of Dallas operating companies, planning covers entity type, owner salary, retirement plans such as cash balance plans that allow large deductible contributions, and the franchise tax method that produces the lowest tax. Before a sale, it covers the structure of the deal, the allocation of the price and whether a portion can be deferred.
Property Tax
Commercial property values in Dallas have risen sharply in recent years, and protests are routine. Owners should check the appraisal notice each spring and protest by May 15 or 30 days after the notice. For homeowners, the homestead exemption and the 10 percent cap on homestead value increases are the main protections.
What a Plan Includes
- A timeline for moves, sales and exercises.
- Projected federal tax under each option.
- Entity and owner compensation review.
- Giving and estate coordination.
- Property tax review.
Dallas Tax Planning Questions
Will my old state tax a gain after I move to Dallas?
Usually not, unless the gain is tied to that state, such as property located there. The move must be real.
What is the QSBS exclusion?
A federal exclusion of gain on qualifying C corporation stock, up to $15 million or ten times basis, for stock held long enough.
Does Texas have an estate tax?
No. Federal estate and gift tax still apply to larger estates.
Why might holding stock until death save tax?
In Texas, both halves of community property generally get a new basis at the first spouse's death, which can eliminate the gain.
Talk to BOMCAS About Tax Planning in Dallas
Plans start from current books and filed business and personal returns, and work through owner and executive pay and purchase timing that affects use tax. Settle old filings first, and review Canada–U.S. rules before moving across the border. Elsewhere in Texas, our statewide pages explain business returns, individual returns, sales and use tax, bookkeeping, payroll, catching up on back taxes and Canada–U.S. tax, and the Texas page ties them together.
Write to BOMCAS about your Dallas company or household and we will answer with next steps and what we need to prepare a quote. Use the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. You can find every Dallas service on the Dallas overview. This is general information, not advice for your own situation.