The single biggest gap in Texas cost-seg coverage isn’t a tax wedge — Texas is 0% state regardless — it’s W-2 density. JPMorgan’s Plano campus is the firm’s largest single location outside New York City, employing roughly 25,000 people across operations, tech, and asset management. Add Toyota North America’s HQ relocation (2017), plus Liberty Mutual, Capital One, FedEx Office, and Pizza Hut HQs, and Plano/Frisco hosts more Fortune-500 corporate concentration than any other Texas metro outside downtown Houston.
- $144,000 Accelerated Depreciation (typical STR worked example)
- $59,000 Est. Year-1 Tax Savings (federal + NIIT, no state)
- 74x Return on Study Cost
Want a number for your specific situation? Use the calculator — preset for property-type defaults you can adjust to your basis and bracket.
The Plano + Frisco investor profile
Plano’s W-2 investor pool is dominated by a small number of very large employers — distinct from Dallas-proper’s diversified mid-cap mix or Houston’s energy concentration:
- JPMorgan Plano — the firm’s Legacy West campus (~25,000 employees) covers asset management, operations, tech, and corporate. Vice Presidents, Executive Directors, and Managing Directors typically run $300K–$2M+ in W-2 + deferred comp + restricted stock.
- Toyota North America HQ — relocated from Torrance CA in 2017 (~4,500 employees in Plano). Senior product, finance, engineering leadership $300K–$800K.
- Liberty Mutual Plano — Liberty’s second-largest campus (~6,500 employees). Senior actuarial, underwriting, and tech leadership $250K–$600K.
- Capital One Plano + FedEx Office HQ + Pizza Hut HQ + PepsiCo Frito-Lay HQ — Plano hosts 11 Fortune-500 headquarters or major operations within a 5-mile radius. Senior comp typically $300K–$1.5M.
- Frisco overflow — newer Cox-Conroy / Lewisville Lake suburbs draw younger JPM/Toyota tech ICs and engineers ($200K–$500K) into newer construction.
The combined marginal-rate stack:
- Federal: 37% (top bracket)
- NIIT: 3.8%
- Texas state: 0%
- Combined: ~40.8%
What makes Plano different from Houston or San Antonio isn’t the wedge — it’s the density of high-W2 corporate seniors per square mile. Legacy West, Granite Park, Stonebriar Centre, and The Star (Dallas Cowboys HQ + retail) cluster the highest concentration of $500K+ W-2 households in Texas outside Houston’s energy corridor.
Verify with your CPA — combined-rate math depends on filing status, AGI thresholds for NIIT, and whether your deduction offsets active vs passive income.
Why cost seg pays for Plano investors
A typical $500K–$1M out-of-state STR reclassifies 24–32% of basis under permanent 100% bonus depreciation. At Plano’s combined bracket (~40.8%), every $1 of accelerated depreciation is worth ~$0.408 in Year-1 cash savings.
Plano’s structural advantage: JPMorgan + Toyota + Liberty Mutual senior employees have predictable, large W-2 comp cycles — annual bonus + RSU vesting in February/March creates a deduction-timing window where cost-seg studies completed by year-end land against compressed taxable income. Coordinate the property’s placed-in-service date and the study delivery with the vesting calendar for maximum Year-1 offset.
DFW airport has direct flights to most premium STR markets (Smokies via DFW→TYS, 30A via DFW→VPS, Lake Tahoe via DFW→RNO, Aspen via DFW→ASE seasonal), which keeps the 100-hour material participation test under Reg. §1.469-1T(e)(3)(ii) accessible without complicated travel logistics.
Where Plano + Frisco investors are buying
Plano investors flow capital to STR markets within 1-3 hour flight or drive:
- Broken Bow, OK — Hochatown — Beavers Bend log-cabin STR, 3.5-hour drive. TX-resident investors get the full 40.8% federal-only benefit since OK has no state-tax interaction for non-resident owners.
- 30A / Destin, FL — Florida 0% state tax, premium beachfront, direct DFW→VPS flights (1.5 hours).
- Pigeon Forge / Gatlinburg, TN — Smokies — Tennessee 0% state tax, cabin STR, direct DFW→TYS flights.
- Lake Tahoe, CA + NV — Premium dual-season mountain STR; direct DFW→RNO; CA-side property carries 13.3% state-tax exposure for CA residents but TX-resident investors only owe federal.
- Aspen, CO — Premium ski STR for the JPMorgan MD / Toyota senior tier; direct DFW→ASE seasonal.
Worked Example — Plano
A JPMorgan Plano Executive Director earning $485K base + $250K performance equity (vests March), residing in Plano West (Lakeside on Preston), buys a 2BR 30A condo for $645K with $25K immediate FF&E (smart-home, theater, beach decor package). After $150K in land, the $495K adjusted basis includes $56K in 5-year assets (appliances, smart-home, theater, decorative lighting, beach package), $22K in 7-year assets (custom furniture, coastal-themed built-ins), and $66K in 15-year property (pool deck, hardscaping, fencing, beach-access lighting, exterior fixtures).
That’s $144K reclassified into accelerated depreciation in Year 1. At Plano’s combined bracket (~40.8%), federal + NIIT savings come to roughly $59,000 — about 74x the cost of the study. Time the placed-in-service date to land in the same calendar year as the March RSU vest and the deduction offsets the equity windfall directly.
What disqualifies a Plano + Frisco investor
REPS (Real Estate Professional Status, 750+ hours + >50% personal services in real estate) is structurally impossible for a full-time JPMorgan ED, Toyota senior, or Liberty Mutual actuarial lead. The STR exception under Reg. §1.469-1T(e)(3)(ii) (7-day average stay + 100-hour material participation) is the path.
RSU-vest timing edge case: JPMorgan and Toyota grant cliffs that vest in March mean Q1 income spikes are predictable. A cost-seg study delivered against a property placed in service before December 31 offsets that same calendar year’s vested equity — much cleaner than for an investor with smoother income.
Frequently Asked Questions
Does Texas conform to federal bonus depreciation? Texas has no state income tax. The federal Year-1 bonus depreciation deduction under OBBBA §168(k) (permanent 100% for property placed in service after January 19, 2025) is the full benefit — no state-level adjustment, no Texas equivalent of Schedule M, no state recapture.
Can JPMorgan or Toyota senior employees use cost segregation? Yes. Both face the standard Texas ~40.8% combined bracket on top-bracket income. A cost segregation study on an out-of-state STR can generate Year-1 federal tax savings that offset active W-2 income, provided the property qualifies under Reg. §1.469-1T(e)(3)(ii) — average stay 7 days or less and 100-hour material participation by the owner AND the loss is not otherwise limited (at-risk, §461(l) excess business loss, basis). RSU vesting events can be timed against the deduction year for concentrated offset.
How does Plano differ from Dallas-proper for cost seg? Federal math is identical (TX 0% state). Differences: Plano’s W-2 profile is concentrated in 6–8 very large Fortune-500 corporate HQs (JPMorgan, Toyota, Liberty Mutual, Capital One, FedEx Office, Pizza Hut, PepsiCo Frito-Lay). Dallas-proper W-2 is more diversified across mid-cap finance, real-estate development, and energy mid-stream. Plano investors typically have more predictable annual comp cycles (annual bonus + RSU vest), which is favorable for cost-seg deduction timing.
What about Frisco specifically — is the math different? Same math, slightly younger investor profile. Frisco draws JPMorgan tech ICs, Toyota engineering, and FedEx Office mid-senior tier in their 30s–40s. Property values are similar to Plano West. The Star (Dallas Cowboys HQ) brought additional senior corporate concentration to Frisco in 2016; PGA of America HQ relocation (2022) added more.
Learn More About Cost Segregation
- What Is Cost Segregation? — Full explainer
- STR Tax Exception Explained — The Reg. §1.469-1T(e)(3)(ii) regulatory framework + 7-day rule mechanics
- Cost Segregation for STRs — STR strategy hub
- Real Estate Professional Status — REPS overview