v3.26.1
TAXES
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026 and December 31, 2025, the Company did not have any 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 months ended March 31, 2026 and 2025, 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 months ended March 31, 2026 and 2025 are 14.35% and 20.50%, respectively.

 

The provision for income tax consists of the following:

 

 

         
  

Three months ended

March 31,

 
  

2026

(unaudited)

   2025 
         
Income tax provision – current  $4,280   $4,280 
Income tax recovery - deferred   (173,141)   (544,075)
Income tax (recovery) provision  $(168,861)  $(539,795)

 

The following table reconciles the statutory tax rate to the Company’s effective tax:

 

 

         
   Three months ended 
   March 31, 
  

2026

(unaudited)

   2025 
         
Net (loss) income before income taxes  $(1,176,411)  $(2,628,502)
Income tax at the federal statutory rate   21%   21%
Statutory U.S. federal income tax (recovery) provision   (247,046)   (551,985)
State margin tax   4,280    4,280 
Non-deductible expense   73,905    7,910 
Total  $(168,861)  $(539,795)

 

 

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

NOTE 13 — TAXES (continued)

 

Corporate Income Taxes (continued)

 

The Company’s deferred tax assets and liabilities consist of the following:

 

 

  

March 31, 2026

(unaudited)

   December 31, 2025 
Deferred tax assets:          
Allowance for credit loss  $98,248   $126,955 
Property and equipment   -    16,480 
Lease liability – operating   1,440,944    1,556,666 
Lease liability – financing   4,717    7,057 
Other temporary difference   3,183,762    2,938,627 
Total deferred tax assets   4,727,671    4,645,785 
Deferred tax liabilities:        
Right of use assets – operating   (1,462,470)   

(1,551,546

)
Right of use assets – financing   (4,228)   (6,408)
Total deferred tax liabilities   (1,466,698)   

(1,557,954

)
Deferred tax assets, net  $3,260,973   $3,087,831