v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
INCOME TAXES

NOTE 12 — 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
June 30,
2026		   Three Months
Ended
June 30,
2025		 
Current:          
Federal income tax expense  $
—
   $1,897 
State income tax (benefit) expense   (247)   1,469 
Deferred:          
Federal income tax (benefit) expense   (34,251)   2,311 
State income tax (benefit) expense   (1,150)   769 
Total income tax (benefit) expense  $(35,648)  $6,446 

 

    Six Months
Ended
June 30,
2026		     Six Months
Ended
June 30,
2025		  
Current:                
Federal income tax expense   $
—
     $ 25,511  
State income tax expense     3,470       12,379  
Deferred:                
Federal income tax benefit     (69,770 )    
—
  
State income tax benefit     (1,150 )    
—
  
Total income tax (benefit) expense   $ (67,450 )   $ 37,890  

 

The following tables reconcile the federal statutory income tax rate to the Company’s effective tax rate for the three and six months ended June 30, 2026 and 2025:

 

    Three Months
Ended
June 30,
2026		     Three Months
Ended
June 30,
2025		  
Federal statutory income tax rate     21.00 %     21.00 %
State statutory income tax rate, net of federal benefit     0.82 %     9.25 %
Permanent difference (non-deductible expenses)     (0.10 )%     0.65 %
Effective tax rate     21.72 %     30.90 %
    Six Months
Ended
June 30,
2026		     Six Months
Ended
June 30,
2025		  
Federal statutory income tax rate     21.00 %     21.00 %
State statutory income tax rate, net of federal benefit     (0.48 )%     7.36 %
Permanent difference (non-deductible expenses)     (0.12 )%     0.15 %
Effective tax rate     20.40 %     28.51 %

 

As of June 30, 2026 and December 31, 2025, the net deferred tax assets consisted of the following:

 

   June 30,
2026		   December 31,
2025		 
Deferred tax assets:          
Unrealized loss on trading securities  $5,348   $
—
 
Capital loss carryforward   
—
    742 
Net operating loss carryforward   66,314    
—
 
Less: valuation allowance   
—
    
—
 
Deferred tax assets, net  $71,662   $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 the evidence, a valuation allowance is needed. As of June 30, 2026, the Company had deferred tax assets of $71,662, primarily related to net operating loss carryforwards and unrealized losses on trading securities. As of December 31, 2025, the Company had deferred tax assets of $742 related to a capital loss carryforward. Management evaluated the available evidence regarding the realizability of the deferred tax assets and concluded that a valuation allowance was not required as of June 30, 2026 and December 31, 2025.