Planning for Learning, Work and Property
Denton clients plan around college costs, university careers, creative businesses and property. BOMCAS does tax planning for Denton clients remotely.
Statewide strategies are on the Texas tax planning page; this one is about college, campus careers and property in Denton.
Paying for College
Parents can save through 529 plans, and Texas offers its own 529 and prepaid tuition plans. When paying tuition, they should coordinate 529 withdrawals with the American opportunity credit, since the same expenses cannot be used for both. Grandparents can contribute to 529 plans using five years of annual exclusions at once.
Faculty Retirement Choices
New university faculty choose between the Teacher Retirement System, a defined benefit plan, and the Optional Retirement Program, a defined contribution plan. The choice is generally irrevocable and depends on how long the person expects to stay in Texas public higher education. Adding 403(b) and 457(b) plans can increase savings.
Musicians and Creative Businesses
Musicians earning steady income may benefit from an LLC taxed as an S corporation once profits are high enough, paying a reasonable salary and taking the rest as distributions. A solo 401(k) allows large retirement contributions. Keeping the business clearly profit-seeking protects deductions.
Rental Investors
Owners of student rentals can use cost segregation, like-kind exchanges and careful timing of repairs. Those who qualify as real estate professionals may deduct rental losses against other income, but the hours test is strict.
Gas Royalties and Land
Royalty owners can hold, sell or give mineral interests. Landowners on Denton's growing edges may receive offers from developers; installment sales and like-kind exchanges can spread or defer the gain. Land with agricultural valuation faces a rollback tax when its use changes.
Peterbilt and Plant Employees
Employees with long service should plan pension choices, 401(k) withdrawals and Social Security timing together. Those with high overtime should check withholding given the new overtime deduction.
Students Starting Careers
New graduates should check their withholding, start contributing to a Roth IRA or workplace plan and understand the student loan interest deduction, which is up to $2,500 a year and phases out at higher incomes. Those with taxable scholarships in their last year may owe tax for that year.
Horse and Ranch Owners
Owners of horse or cattle land can plan around agricultural valuation, depreciation of breeding animals and facilities, and the sale of horses held for breeding, which can produce capital gain when held long enough. Records showing a profit-seeking operation are important.
Property Tax
Homeowners should file the homestead exemption with the Denton Central Appraisal District and protest values when needed. School districts must exempt $140,000 of a homestead's value, with an extra $60,000 for owners 65 or older or disabled.
Giving to the Universities and Arts
Donors who support scholarships, music programmes or local arts groups can give appreciated stock to avoid capital gains tax, bunch several years of gifts into one year to itemise, or use a donor-advised fund. From 2026 non-itemisers can deduct up to $1,000 of cash gifts, or $2,000 jointly. Retirees 70½ or older can give directly from an IRA, which counts toward required distributions.
Our Process
- Review returns and goals.
- Project income and tax.
- Compare options.
- Recommend steps.
- Check in before year-end.
Denton Tax Planning Questions
Can I use a 529 and the American opportunity credit together?
Yes, but not for the same expenses.
Should faculty choose TRS or ORP?
It depends on how long they expect to stay; the choice is generally permanent.
When should a musician form an S corporation?
When profits are high enough that payroll tax savings exceed the costs.
Is there a Texas estate tax?
No.
Talk to BOMCAS About Tax Planning in Denton
Plans start with accurate 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 foreign assets. You can read the statewide Texas rules on business returns, personal tax, sales tax, bookkeeping, payroll, late filing and cross-border tax on our state pages, linked from the Texas overview.
Running a venue off the Square, renting houses near campus or filing as an international student for the first time? Drop BOMCAS a line about it and we will let you know what we would look at first and what a quote would need. You can reach us on the contact page or the form below, by calling 780-667-5250 or by emailing info@bomcas.ca. Each Denton service is linked from the Denton overview. The information here is general and is not advice for your own situation.