Company: SQFTP
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026786
Chunk: 171

Company: Presidio Property Trust, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 171
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 local income taxes on our domestic taxable REIT subsidiaries (""TRS"") based on the tax jurisdictions in which they operate.
    
   During the six months ended  June 30, 2025 and 2024, we recorded a current income tax provision (benefit) of $28,501 and $160,586, respectively, related to activities of our taxable REIT subsidiaries. There was a $298,644 income tax asset related to the operating activities of our TRS entities as of  June 30, 2025 and  December 31, 2024, respectively.
    
   We have calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the projected full fiscal year to the TRS pretax income or loss excluding unusual or infrequently occurring discrete items for the reporting period, and have accounted for the REIT's federal refunds and minimum state income taxes as a discrete item in the reporting period.
    
   In  December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after  December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company adopted the disclosures on a prospective basis which did not create a material impact to our consolidated financial statements.

   15. RELATED PARTY
    
   During the three and six months ended  June 30, 2025 and three and six months ended  June 30, 2024, the Company leased portions of its corporate headquarters to Puppy Toes, Inc., a company owned by the Chief Executive Officer and his wife, and to Centurion Counsel, Inc., which is owned by Puppy Toes, Inc. Rent billed to these entities from the Company totaled $3,378 and $6,755 for three and six months ended  June 30, 2025, respectively, and $2,688 and $5,376 for three and six months ended  June 30, 2024, respectively. 
    
   Additionally, we received full payroll reimbursement for employee services provided to Centurion Counsel and Puppy Toes, Inc. during the six months ended  June 30,