If you own a business in Arlington and you’re getting closer to retirement, taxes probably sit in the back of your mind. Not every day. But often enough.
Especially capital gains tax and how it shows up when you sell investments, property, or even your business.
We hear this a lot:
“Didn’t Texas get rid of capital gains tax?”
Yes. At the state level. No. At the federal level.
Let’s make this simple, practical, and easy to skim. No jargon. No fluff. Just the things that matter.
Why Capital Gains Matter More As Retirement Gets Closer
When you sell something for more than you paid, that profit is a capital gain.
That includes:
- A business sale
- Rental property
- Stocks or mutual funds
Federal tax still applies. And the timing matters. Here’s the part that surprises many business owners.
The same sale can mean very different taxes depending on the year you sell.
For example:
- Selling during a high-income year can push gains into a higher bracket
- Selling after stepping back from work can reduce the tax hit
Frustrated by not knowing when to sell?
Here’s how we handle it.
We look at income now, income later, and where gains fit best.
Learn how timing plays into tax planning at Kleiber and Associates CPAs
Retirement Accounts Are Quiet Tax Tools
Most people think of retirement accounts as “savings.”
We see them as tax control tools.
Used well, they can reduce investment taxes over time.
Common options for business owners:
- Solo 401(k)
- SEP IRA
- SIMPLE IRA
- Roth IRA conversions
- Health Savings Accounts (HSAs)
Why this matters:
- Traditional accounts defer tax
- Roth accounts shift taxes earlier, often at lower rates
- HSAs offer tax-free growth when used correctly
Tired of guessing which investments go where?
Let’s make it simple. Some assets belong in tax-deferred accounts. Others do not.
See practical retirement planning ideas on the Kleiber and Associates CPAs blogs
Offset Gains Instead of Just Paying Them
Many business owners assume capital gains taxes are unavoidable.
They aren’t always. Here are a few ways gains can be reduced:
Tax-loss harvesting
Selling investments at a loss to offset gains
Installment sales
Spreading income over multiple years instead of one big hit
Intentional timing
Selling during a lower-income year
We often hear:
“I sold something years ago and didn’t realize I had options.”
That’s common. Planning ahead gives you choices. Planning late limits them.
Curious what options apply to your situation? Start with a conversation at Kleiber and Associates CPAs.
Invest With Taxes in Mind, Not Just Returns
High returns look great on paper. But taxes decide what stays in your pocket.
Tax-aware investing focuses on:
- Low-turnover funds like ETFs
- Asset location, not just asset allocation
- Reducing surprise taxable events
Example:
- Bonds often create taxable income
- Index funds often do not
Putting the right investments in the right accounts can lower long-term tax drag.
Tired of tax surprises every March? There’s a calmer way to structure this.
Explore tax-efficient investing conversations with Kleiber and Associates CPAs
Retirement Planning Also Means Thinking About Family
For many business owners, retirement is not just about income.
It’s about kids. Grandkids. Step-kids. Legacy. Capital gains planning plays a role here too.
Important ideas to know:
- Stepped-up basis may reduce taxes for heirs
- Gifting appreciated assets can shift taxes strategically
- Charitable giving using appreciated assets can reduce gains
We often hear:
“I want my family to deal with less tax stress than I did.”
That’s a reasonable goal.
It starts with planning before a transition happens. Estate-aware tax planning starts at Kleiber and Associates CPAs.
Quick Takeaways
- Texas has no state capital gains tax. Federal tax still applies.
- Timing sales can lower total tax.
- Retirement accounts are powerful tax tools.
- Investment structure affects long-term taxes.
- Family and estate plans deserve tax attention too.
Final Thoughts
Retirement planning for Arlington business owners is not about perfection.
It’s about making informed choices before big financial moves happen.
Understanding capital gains tax, knowing when to sell, and structuring investments with taxes in mind can reduce unnecessary stress later.
If you want a clearer picture of how these pieces fit together, Kleiber and Associates CPAs offers thoughtful, real-world tax planning grounded in experience.
👉 Visit https://www.kleibercpa.com/ to start exploring your next steps.
FAQs
Does Texas charge capital gains tax?
No state tax. Federal capital gains tax still applies.
Can I reduce investment taxes before retirement?
Yes. Timing, account selection, and loss strategies can all play a role.
Should estate planning include capital gains planning?
Absolutely. Basis rules and gifting strategies can affect family outcomes.
Reference
IRS - 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500