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TAXES | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
TAXES | NOTE 14 — TAXES Corporate Income Taxes Massimo Motor and Massimo Marine both terminated their status as a Subchapter S Corporation as of June 1, 2023, in connection with the Reorganization and became a taxable C Corporation. Prior to that date, as an S Corporation, the Company had no U.S. federal income tax expense. As such, any period prior to June 1, 2023 will only reflect a margin tax for the state of Texas and corresponding tax expense. As a C Corporation, the Company is subject to a combined effective tax rate for federal income taxes of 21% and state margin tax. As of December 31, 2024 and 2023, the Company did not have an accrued liability for uncertain tax positions and does not anticipate recognition of any significant liabilities for uncertain tax positions during the next 12 months. For the years ended December 31, 2024 and 2023, no amounts were incurred for income tax uncertainties or interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company’s tax years since its formation remain subject to possible income tax examination by its major taxing authorities for all periods. The Company’s effective tax rate for the years ended December 31, 2024 and 2023 are 27.1% and 17.0% respectively. The provision for income tax consists of the following: SCHEDULE OF INCOME TAX PROVISION
|  | 2024 |  |  | 2023 |
|  | Years Ended |
|  | December 31, |
|  | 2024 (restated) |  |  | 2023 |
Income tax provision – current |  | $ | 1,646,771 |  |  | $ | 2,264,405 |
Income tax recovery - deferred |  |  | (992,013 | ) |  |  | (43,137 | )
Deferred tax adjustment – change of tax rates |  |  | - |  |  |  | (91,464 | )
Income tax provision |  | $ | 654,758 |  |  | $ | 2,129,804 |
The following table reconciles the statutory tax rate to the Company’s effective tax: SCHEDULE OF RECONCILIATION OF INCOME TAXES
|  | 2024 |  |  | 2023 |
|  | Years Ended |
|  | December 31, |
|  | 2024 (restated) |  |  | 2023 |
Net income before income taxes |  | $ | 2,416,667 |  |  | $ | 12,545,029 |
Income tax at the federal statutory rate |  |  | 21 | % |  |  | 21 | %
Statutory U.S. federal income tax provision |  |  | 507,500 |  |  |  | 2,634,456 |
S Corporation benefits |  |  | - |  |  |  | (553,133 | )
State margin tax |  |  | 32,561 |  |  |  | 139,945 |
Non-deductible expense |  |  | 40,048 |  |  |  | - |
Prior year true-up |  |  | 74,649 |  |  |  | - |
Deferred tax adjustment – change of tax rates |  |  | - |  |  |  | (91,464 | )
Total |  | $ | 654,758 |  |  | $ | 2,129,804 |
MASSIMO GROUP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 14 — TAXES (continued) Corporate Income Taxes (continued) The Company’s deferred tax assets and liabilities consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
|  | December 31, 2024 (restated) |  |  | December 31, 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for credit loss |  | $ | 80,680 |  |  | $ | 117,046 |
Property and equipment |  |  | 16,480 |  |  |  | 16,480 |
Lease liability – operating |  |  | 2,001,843 |  |  |  | 310,426 |
Lease liability – financing |  |  | 16,175 |  |  |  | 24,920 |
Other temporary difference |  |  | 1,018,553 |  |  |  | - |
Total deferred tax assets |  |  | 3,133,731 |  |  |  | 468,872 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Right of use assets – operating |  |  | (1,992,039 | ) |  |  | (310,426 | )
Right of use assets – financing |  |  | (15,078 | ) |  |  | (23,845 | )
Total deferred tax liabilities |  |  | (2,007,117 | ) |  |  | (334,271 | )
Deferred tax assets, net |  | $ | 1,126,614 |  |  | $ | 134,601 |

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