Bespoke CPA Advisory for San Rafael’s Commercial Economy
Serving as the county seat and central commercial economic engine of Marin County, San Rafael combines a thriving downtown district with specialized medical groups, engineering firms, and commercial specialty trade contractors. Managing high-revenue enterprises alongside lucrative Marin County real estate portfolios requires proactive, multi-year tax execution to shield your income from top-tier California brackets.
Instead of simply filing historic returns, we engineer comprehensive tax shields for North Bay entrepreneurs. From restructuring sole proprietorships via our LLC to S-Corp tax conversion hub to executing tax-deferred 1031 property exchanges, we help San Rafael business owners preserve their capital. We serve specialty contractors, healthcare practices, and real estate developers across San Rafael, Novato, and Mill Valley using advanced cost segregation engineering and Real Estate Professional Status (REPS) planning.
2026 Tax Reality: Surviving the QBI Deduction Sunset
With the expiration of the 20% Section 199A QBI deduction at the end of 2025, effective tax rates for Marin County LLCs and partnerships have spiked dramatically this year. Because the easy 20% tax shield is gone, relying on basic tax preparation is a massive liability. We aggressively deploy S-Corp restructuring, Defined Benefit Plans, and Section 179 depreciation to force your taxable income down and recover the wealth you lost to the TCJA sunset.
The Marin County BioTech & Multi-Family Real Estate Strategy
- The Income Event: A San Rafael independent BioTech consultant nets $450,000 in active business profit as a single-member LLC, while their spouse manages a newly acquired $2.5M multi-family rental property in Marin County.
- The Tax Threat: The active income is subjected to a punishing 15.3% self-employment tax and top-tier state brackets, compounded by the loss of the QBI deduction. Furthermore, their high AGI traps the rental property’s depreciation as “unallowable passive losses.”
- Moontree CPA Solution: We restructure the consultancy into an S-Corporation, optimize officer compensation, and enact the CA AB 150 PTE election. Simultaneously, we guide the spouse to legally qualify for Real Estate Professional Status (REPS) and execute a cost segregation study on the multi-family property.
- The Result: The S-Corp + PTE combo immediately saves ~$28,000 in self-employment and state taxes. More importantly, REPS unlocks $150,000+ in accelerated depreciation losses from the rental, allowing those losses to cross over and actively wipe out the consultant’s top-bracket active income.
Full-Service CPA Tax Solutions for San Rafael
Small business tax advisory, corporate S-Corp compliance, and commercial real estate wealth strategies.
Small Business & S-Corp Advisory
For San Rafael trade contractors, medical practices, and local business owners, we handle corporate tax filings (1120-S, 1065), optimize officer compensation, and deploy California AB 150 PTE elections.
Heavy Vehicle & Equipment Deductions
Work trucks, service vans, and medical equipment are massive investments. We deploy Section 179 and Bonus Depreciation schedules to write off qualifying purchases in year one.
Real Estate Rental & REPS Strategy
Investing in Marin County real estate? We pair commercial, multi-family, and residential rental properties with Real Estate Professional Status (REPS) and engineering cost segregation studies.
Property Transfers & 1031 Exchanges
Protecting family commercial or residential property? We coordinate California Prop 19 reassessment exemptions and structure tax-deferred 1031 property exchanges.
Explore the North Bay Corporate Tax Hub
Moontree Tax serves specialized founders, commercial contractors, and real estate professionals across Marin County, the North Bay, and the Central Valley. Learn more about our comprehensive regional tax strategies:
Explore the North Bay & Inland Advisory Hub →Frequently Asked Questions for San Rafael Taxpayers
How is the City of San Rafael Business License Tax calculated for local enterprises and contractors?
Under City of San Rafael Municipal Code Chapter 10.04, all businesses, S-Corporations, independent 1099 contractors, and commercial trade operations within city limits must hold an active City Business License. The tax is assessed annually based on gross receipts generated in San Rafael or employee headcount, depending on your business category.
How much is the Real Property Transfer Tax when transferring real estate in San Rafael?
Real property sales in San Rafael are subject to both the Marin County Documentary Transfer Tax ($1.10 per $1,000 of property value) and the City of San Rafael Municipal Transfer Tax ($2.00 per $1,000), creating a total combined transfer tax rate of $3.10 per $1,000 (0.31%). By local custom, this is typically paid by the seller at closing unless agreed otherwise in the contract.
How can San Rafael business owners and medical practices bypass the federal SALT cap?
By electing into California’s Pass-Through Entity (PTE) tax workaround under AB 150, eligible San Rafael S-Corporation and partnership owners pay an elective 9.3% state tax directly at the business entity level. This transforms state tax payments into an above-the-line federal business deduction, completely bypassing the personal $10,000 SALT deduction limit.
Optimize Your San Rafael Tax Strategy Today
Schedule a 1-on-1 strategy session with Brandy Phuong, CPA to review your business entity, Marin real estate portfolio, or commercial equipment strategy and protect your wealth.
Schedule Your San Rafael CPA Strategy Session →