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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Taxes [Abstract]  
INCOME TAXES

NOTE 10 — INCOME TAXES

 

Linkhome Holdings was incorporated in the State of Nevada in November 2023 and is subject to a 21% corporate federal income tax rate. There is no state income tax in Nevada. Linkhome Holdings serves as a holding company for Linkhome Realty.

 

Effective July 13, 2021, Linkhome Realty elected to be taxed as a S-corporation, a pass-through entity, for which the income, losses, deductions, and credits flow through to the shareholders of the Company for federal tax purposes. The California state annual income tax for S-corporation is the greater of 1.5% of the corporation’s net income or $800. Effective January 1, 2024, Linkhome Realty’s tax status changed to C-corporation, subject to a 21% corporate federal income tax rate and an 8.84% California state income tax rate.

 

Effective for the tax year beginning January 1, 2024, and continuing thereafter unless revoked, Linkhome Holdings and Linkhome Realty have elected to file a consolidated federal income tax return. As a result, Linkhome Holdings’ net operating losses (“NOLs”) can be used to offset Linkhome Realty’s taxable income, reducing the Company’s overall tax liability.

 

The Company’s provision for income taxes consisted of the following:

 

   Three Months
Ended
September 30,
2025		   Three Months
Ended
September 30,
2024		 
Current:        
Federal income tax expense  $8   $80,571 
State income tax expense   9,030    37,206 
Deferred:          
Federal income tax expense   
-
    
-
 
State income tax expense   
-
    
-
 
Total  $9,038   $117,777 

 

   Nine Months Ended
September 30,
2025		   Nine Months Ended
September 30,
2024		 
Current:        
Federal income tax expense  $25,519   $114,864 
State income tax expense   21,409    53,041 
Deferred:          
Federal income tax benefit   
-
    
-
 
State income tax benefit   
-
    
-
 
Total  $46,928   $167,905 

The following tables reconciled the federal statutory tax rate to the Company’s effective tax rate for the three and nine months ended September 30, 2025 and 2024:

 

   Three months Ended
September 30,
2025		   Three months Ended
September 30,
2024		 
Federal statutory income tax rate   21.00%   21.00%
State statutory income tax rate, net of effect of state income tax deductible to federal income tax   81.70%   7.32%
Change in valuation allowance   
-
    0.95%
Permanent difference (non-deductible expenses)   0.81%   0.04%
Effective tax rate   103.51%   29.31%

 

The effective tax rate for the three months ended September 30, 2025, was unusually high primarily due to the low level of pre-tax income during the quarter and the resulting volatility inherent in interim period tax calculations.

 

   Nine months Ended
September 30,
2025		   Nine months Ended
September 30,
2024		 
Federal statutory income tax rate   21.00%   21.00%
State statutory income tax rate, net of effect of state income tax deductible to federal income tax   11.94%   7.72%
Change in valuation allowance   
-
    2.13%
Permanent difference (non-deductible expenses)   0.19%   0.06%
Effective tax rate   33.13%   30.91%

 

As of September 30, 2025 and December 31, 2024, the net deferred tax assets consisted of the following:

 

   September 30,
2025		   December 31,
2024		 
Deferred tax assets:        
Unrealized loss on trading securities  $
      -
   $
-
 
Net operating loss (“NOL”) carryforwards   
-
    7,760 
Less: valuation allowance   
-
    (7,760)
Deferred tax assets, net  $
-
   $
-
 

 

The Company evaluates its valuation allowance requirements at the end of each reporting period by reviewing all available evidence, both positive and negative, and assessing whether, based on the weight of that evidence, a valuation allowance is needed. When circumstances cause a change in management’s judgement about the realizability of deferred tax assets, the impact of the change on the valuation allowance is generally reflected in income from operations. The future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryforward period available under applicable tax law. As of September 30, 2025, the Company had no deferred tax assets. Management has assessed the need for a valuation allowance and determined that none is required, as there are no deferred tax assets to evaluate.