Plano Tax Planning

Planning for High Earners and Founders

Plano's executives, engineers and business owners often have high incomes, stock awards and investments that make planning worthwhile. Texas has no income tax and no estate tax, but federal tax, the timing of moves and how stock is managed can make large differences. BOMCAS works on these plans remotely.

Statewide planning ideas are on the Texas tax planning page. This page deals with stock, moves and founders in Plano.

Managing Stock Awards

Employees with large holdings of company stock face concentration risk and tax decisions. Selling shares soon after vesting usually produces little gain. Holding for more than a year turns later gains into long-term capital gains. Exercising incentive stock options needs AMT planning. Gifts of appreciated shares to charity or a donor-advised fund avoid capital gains tax.

Timing a Move to Texas

People moving to Plano from income tax states can save by timing income. Bonuses, stock sales and option exercises after becoming a Texas resident are generally not taxed by the old state, but income earned while working there may still be. Selling a home in the old state before or after the move can affect state tax. A clear break with the old state, documented with records, helps if residency is questioned.

Startup Founders

Founders of Plano startups should consider an 83(b) election for restricted stock, the choice between an LLC and a C corporation, and whether the business can qualify for the qualified small business stock exclusion, which can exclude a large part of gain on sale after the required holding period. Research and software development costs may qualify for the research credit.

Consultancy Owners

Owners of IT and consulting firms can choose S corporation status to reduce self-employment tax, paying themselves a reasonable salary and taking the rest as distributions. Retirement plans, including cash balance plans for high earners, allow large deductible contributions. The qualified business income deduction is limited for consulting businesses at higher incomes.

Family Wealth and International Families

Plano families with parents abroad may receive large gifts or inheritances, which are not taxed in the U.S. but must be reported on Form 3520 over $100,000. Those planning to return home eventually should understand the U.S. tax effects of leaving, including how foreign retirement accounts and U.S. property will be treated.

Property Tax

Homeowners and businesses can reduce property tax through exemptions and protests with the Collin or Denton appraisal districts, generally due by May 15. Owners 65 and older can freeze school taxes at the level of the year they qualify.

Estate Planning

Texas has no estate or inheritance tax, and the federal estate tax exemption is $15 million per person from 2026, indexed for inflation. Most Plano families will not owe estate tax, but those with large stock holdings, businesses or property abroad should plan with an attorney for gifts, trusts and how assets pass. Community property rules give both halves of community assets a new basis at the first spouse's death, which can remove built-in gains on stock.

Education and Children

Families can front-load five years of annual exclusion gifts into a 529 plan at once. Teenagers with summer jobs can contribute to Roth IRAs, and unused 529 funds can be rolled into a Roth IRA for the beneficiary within limits.

What a Plan Covers

Stock award and option strategy.
Move timing and residency.
Founder equity and entity choice.
Owner pay and retirement plans.
Gifts, inheritances and property tax.