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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:

 

   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:

 

   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:

 

   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