{"@context":"https://schema.org","@type":"FAQPage","mainEntity":[{"@type":"Question","name":"What is the Texas ag exemption, and how do I keep it?","acceptedAnswer":{"@type":"Answer","text":"

The \"ag exemption\" is really a special-use valuation (1-d-1) that taxes qualifying land based on its agricultural use rather than market value, which can sharply lower property taxes. To keep it, the land must continue to meet the use and intensity requirements your county appraisal district sets. We help owners understand those requirements and plan around any change in use.

"}},{"@type":"Question","name":"What is a rollback tax?","acceptedAnswer":{"@type":"Answer","text":"

If land under an agricultural or wildlife valuation changes to a non-qualifying use, the appraisal district can assess a rollback tax that recaptures the difference between the ag value and market value for prior years, plus interest. We model rollback exposure before a sale or change in use so it doesn't become an unexpected bill.

"}},{"@type":"Question","name":"How is mineral or royalty income from my land taxed?","acceptedAnswer":{"@type":"Answer","text":"

Mineral and royalty income is taxed as ordinary income but is usually eligible for a depletion deduction, and the treatment depends on whether you hold a royalty or working interest. Because so many Texas properties produce, we handle this alongside land taxes—see our Oil & Gas Royalty Owner Tax services for the details.

"}},{"@type":"Question","name":"Can I use a 1031 exchange when I sell land?","acceptedAnswer":{"@type":"Answer","text":"

Often, yes. Like-kind exchanges let you defer capital gains tax when you sell land and reinvest in other qualifying real property within the required timeframes. The rules are strict on timing and identification, so we plan the exchange before you close. This pairs well with our Real Estate Investor Tax services.

"}},{"@type":"Question","name":"How do I pass my land to my children without a big tax bill?","acceptedAnswer":{"@type":"Answer","text":"

Options include gifting strategies, family entities, and planning that takes advantage of the stepped-up basis at death. The right approach depends on your goals and the size of your estate. We coordinate land transfers with our Estate & Trusts and succession planning services to keep land in the family efficiently.

"}}]}