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Tag: Margin tax
Banking & Insurance Companies: Special Margin-Tax Rules in Texas
Introduction Banking and insurance companies in Texas face unique tax obligations under the state’s franchise tax regime, often grappling with complex margin calculations that differ significantly from other industries. Inexperienced tax advisors may misapply these special rules, leading to overpayments or compliance issues with the Texas Comptroller, risking penalties and audits. Are you confident your […]
Crypto Mining Incentives vs High Franchise Tax Apportionment in Texas
Introduction Texas has become a hub for cryptocurrency mining due to its abundant energy resources and favorable regulatory environment, but crypto miners must balance lucrative state incentives against the complexities of high franchise-tax apportionment. Inexperienced advisors may overlook how Texas franchise tax calculations can erode the benefits of incentives like property tax abatements, leading to […]
83(b) Election for Texas Residents: Margin-Tax Timing
Introduction Texas residents receiving restricted stock or equity grants often overlook the timing implications of an 83(b) election on both federal income tax and Texas franchise tax, potentially leading to unexpected liabilities or missed savings. Inexperienced advisors may fail to coordinate the election with Texas’s margin-tax rules, resulting in inefficient tax outcomes for startups and […]
Letter Rulings on SaaS COGS: 2024–2025 Highlights
Introduction Texas SaaS companies hoping to reduce Franchise Tax via Cost of Goods Sold (COGS) deductions need to be extra cautious. The Texas Comptroller issued several key letter rulings in 2024–2025 that clarify—and restrict—COGS eligibility for software businesses. Let’s break down what was allowed, what was denied, and how you can stay compliant in 2025. […]