v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Taxes [Abstract]  
INCOME TAXES

NOTE 11 — 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 an 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

March 31,

2026

  

Three Months Ended

March 31,

2025

 
Current:        
Federal income tax expense  $
—
   $23,614 
State income tax expense   3,717    10,910 
Deferred:          
Federal income tax benefit   (35,519)   (2,311)
State income tax benefit   
—
    (769)
Total income tax (benefit) expense  $(31,802)  $31,444 

 

The following tables reconciled the federal statutory income tax rate to the Company’s effective tax rate for the three months ended March 31, 2026 and 2025:

 

  

Three Months Ended

March 31,

2026

  

Three Months Ended

March 31,

2025

 
Federal statutory income tax rate   21.00%   21.00%
State statutory income tax rate, net of federal benefit   (1.77)%   7.01%
Permanent difference (non-deductible expenses)   (0.13)%   0.05%
Effective tax rate   19.10%   28.06%

 

As of March 31, 2026 and December 31, 2025, the net deferred tax assets consisted of the following:

 

  

March 31,

2026

   December 31,
2025		 
Deferred tax assets:        
Capital loss carryforward  $742   $742 
Net operating loss carryforward   35,519    
—
 
Less: valuation allowance   
—
    
—
 
Deferred tax assets, net  $36,261   $742 

 

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. As of March 31, 2026 and December 31, 2025, the Company had deferred tax assets of $36,261 and $742, respectively, primarily related to net operating loss carryforwards and capital loss carryforwards. Management evaluated the available evidence regarding the realizability of these deferred tax assets and concluded that a valuation allowance was not required as of March 31, 2026 and December 31, 2025.