Planning for Owners and Families
Garland owners often ask the same questions: when to buy the next machine, how to pay themselves, and how to hand over or sell the business. Families ask about retirement, education and the house. BOMCAS does tax planning for Garland clients remotely, with projections built on current figures.
Broader strategies are on the Texas tax planning page. This page applies them to Garland owners and families.
Timing Equipment Purchases
With 100 percent bonus depreciation permanently available for equipment acquired after January 19, 2025, a manufacturer can deduct a new machine in full in the year it goes into service. That is useful in a strong year, but buying only to save tax, or deducting everything in a year when income is already low, can waste deductions. We model income for the year before major purchases and consider financing, since a fully deducted machine bought with a loan still has to be paid for.
Paying Owners
Owners of S corporations pay themselves a reasonable salary and take the rest as distributions without payroll tax. Salaries that are too low draw IRS attention; salaries that are too high cost payroll tax. The qualified business income deduction, now permanent, depends partly on wages paid, which affects the balance.
Selling or Passing On the Business
Many Garland machine shops and family firms were started decades ago, and their founders are now reaching retirement. A sale may be structured as a sale of shares or of assets, with very different results. In an asset sale, equipment that was fully depreciated produces ordinary income through depreciation recapture. Transfers to children can use gifts, sales and the $15 million estate tax exemption for 2026.
Retirement Plans
Small employers can set up a SIMPLE IRA, a 401(k) or a SEP. A safe harbour 401(k) lets owners save more while giving employees a set contribution. New small employer plans qualify for federal start-up credits for several years.
Teachers and Public Employees
Garland ISD and city employees can contribute to both a 403(b) and a 457(b), each with its own limit, which lets them defer a large part of pay. Those approaching retirement should coordinate pension, Social Security and withdrawals from savings.
Education
Families can save in 529 plans for college and, from 2026, up to $20,000 a year of K–12 tuition and other school costs. Texas also has its own 529 plan and a prepaid tuition plan.
Workers With Large Overtime
Employees who earn a great deal of overtime should check their withholding, since the new overtime deduction may lower their tax and they could adjust their W-4 rather than wait for a refund. Those whose income is near the phase-out range need a projection before changing anything.
Property Tax
School districts must exempt $140,000 of a homestead's value, with an additional $60,000 for owners 65 or older or disabled, and their school taxes are frozen. Businesses can protest values with the Dallas Central Appraisal District. Planning includes filing exemptions and protesting values each spring.
Our Process
- Review returns and current figures.
- Project income and tax.
- Compare options for purchases, pay and sales.
- Recommend steps and timing.
- Follow up before year-end.
Garland Tax Planning Questions
Should I buy equipment in December to save tax?
Only if you need it and the deduction is worth more this year than later.
What happens to depreciation when I sell the business?
Depreciation on equipment is usually recaptured as ordinary income in an asset sale.
Can teachers contribute to both a 403(b) and a 457(b)?
Yes, if the employer offers both, each with its own limit.
Is there Texas inheritance tax?
No. Texas has no estate or inheritance tax.
Talk to BOMCAS About Tax Planning in Garland
A plan needs up-to-date books and the latest business and personal returns. It is carried out through payroll and through purchases with sales tax effects. Any unfiled years are fixed first, and property abroad is part of the picture. For the rules that apply everywhere in Texas, read our state pages on business tax, personal tax, sales and use tax, bookkeeping, payroll, back taxes or cross-border tax, all gathered on the Texas overview.
If you run a Garland plant, shop or restaurant, or simply need your family’s return done right, send BOMCAS a few lines about it and we will tell you what to send and what the work would cost. Reach us through the contact page or the form below, by phone at 780-667-5250 or at info@bomcas.ca. All Garland services are listed on the Garland overview. What you read here is general information and not advice on your situation.