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TAXES | 9 Months Ended
--- | ---
Sep. 30, 2025
Income Tax Disclosure [Abstract] |
TAXES | NOTE 13 — TAXES Corporate Income Taxes Massimo Motor and Massimo Marine were incorporated in the United States and are subject to a statutory income tax rate at 21%. As of September 30, 2025 and December 31, 2024, 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 three and nine months ended September 30, 2025 and 2024, 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 three and nine months ended September 30, 2025 and 2024 are 21.20%, 17.37%, 19.90% and 23.81% respectively. The provision for income tax consists of the following: SCHEDULE OF INCOME TAX PROVISION
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Income tax provision – current |  | $ | 3,842 |  |  | $ | 55,782 |  |  | $ | 12,840 |  |  | $ | 2,067,219 |
Income tax (recovery) - deferred |  |  | 406,775 |  |  |  | (677,447 | ) |  |  | (114,722 | ) |  |  | (974,691 | )
Income tax provision |  | $ | 410,617 |  |  | $ | (621,665 | ) |  | $ | (101,882 | ) |  | $ | 1,092,528 |
The following table reconciles the statutory tax rate to the Company’s effective tax: SCHEDULE OF RECONCILIATION OF INCOME TAXES
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Net (loss) income before income taxes |  | $ | 1,937,024 |  |  | $ | (3,123,898 | ) |  | $ | (586,503 | ) |  | $ | 4,587,607 |
Income tax at the federal statutory rate |  |  | 21 | % |  |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Statutory U.S. federal income tax (recovery) provision |  |  | 406,775 |  |  |  | (656,018 | ) |  |  | (123,166 | ) |  |  | 963,398 |
S Corporation benefits |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
State margin tax |  |  | 3,842 |  |  |  | 17,736 |  |  |  | 12,840 |  |  |  | 101,473 |
Non-deductible expense |  |  | - |  |  |  | 16,617 |  |  |  | 8,444 |  |  |  | 27,657 |
Other adjustments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 410,617 |  |  | $ | (621,665 | ) |  | $ | (101,882 | ) |  | $ | 1,092,528 |
MASSIMO GROUP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 13 — TAXES Corporate Income Taxes (continued) The Company’s deferred tax assets and liabilities consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
|  | September 30, 2025 |  |  | December 31, 2024 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for credit loss |  | $ | 79,375 |  |  | $ | 80,680 |
Property and equipment |  |  | 16,480 |  |  |  | 16,480 |
Lease liability – operating |  |  | 1,670,418 |  |  |  | 2,001,843 |
Lease liability – financing |  |  | 9,372 |  |  |  | 16,175 |
Loss carried forward |  |  | 167,429 |  |  |  |  |
Other temporary difference |  |  | 968,988 |  |  |  | 1,018,553 |
Total deferred tax assets |  |  | 2,912,062 |  |  |  | 3,133,731 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Right of use assets – operating |  |  | (1,662,138 | ) |  |  | (1,992,039 | )
Right of use assets – financing |  |  | (8,587 | ) |  |  | (15,078 | )
Total deferred tax liabilities |  |  | (1,670,725 | ) |  |  | (2,007,117 | )
Deferred tax assets (liabilities), net |  | $ | 1,241,337 |  |  | $ | 1,126,614 |

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