Frisco Tax Planning

Planning in a Fast-Growing City

Frisco households tend to be young, with rising income, stock pay and young children, and Frisco businesses are growing. Both benefit from planning before decisions are made. BOMCAS does tax planning for Frisco clients remotely.

General strategies live on the Texas tax planning page. Frisco's movers, founders and practice owners are the subject here.

Before You Move to Texas

People moving from California, New York or Illinois can often reduce tax by timing the move. Bonuses, stock sales and option exercises after becoming a Texas resident may escape the old state's tax, though stock earned there may still be partly taxable. Selling a business or property after the move can also help, but the old state may challenge moves timed around a large sale. Ending ties to the old state matters as much as the date.

Founder Stock

Founders and early employees of C corporations may qualify for the qualified small business stock exclusion. For stock issued after July 4, 2025, half of the gain is excluded after three years, three-quarters after four and all after five, up to $15 million or ten times the basis, and companies with up to $75 million of gross assets qualify. Keeping records from the date stock is issued is essential.

Stock Pay and Concentration

Employees whose wealth is concentrated in employer stock can sell over several years, give appreciated shares to charity or exchange funds. RSUs are already taxed at vesting, so selling them soon after costs little extra tax.

Practice and Business Owners

Physicians and dentists in S corporations set reasonable salaries, and the qualified business income deduction for professional services is limited at higher incomes. Cash balance pension plans let older owners contribute far more than a 401(k) allows. Owners buying a building for their practice can hold it in a separate company and rent it to the practice.

Property Tax in Collin and Denton

Frisco homes are appraised by either Collin or Denton County. Values in fast-growing areas often rise sharply, but homestead values for tax purposes cannot rise more than 10 percent a year. Filing the homestead exemption and protesting values each year are part of planning.

Short-Term Rentals Near the Resort

Some Frisco investors are buying homes to rent to visitors near Universal Kids Resort and the stadiums. When the average guest stay is seven days or less, the rental is not treated as a rental activity under the passive loss rules, so an owner who materially participates may be able to deduct losses, including accelerated depreciation from a cost segregation study, against other income. The rules on participation are strict and need good records.

Education and Giving

529 plans cover college and up to $20,000 a year of K–12 costs from 2026. Families with significant giving can use a donor-advised fund in high-income years and give appreciated stock instead of cash.

Estate Planning

The federal estate tax exemption is $15 million per person for 2026, and Texas has no estate tax. Young families should still have wills, guardianship choices and correct beneficiary designations.

How We Work

Review returns and stock plans.
Project the year and next year.
Compare options.
Agree on steps and dates.
Check before year-end.