Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 1813

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1813
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4    December 31, 2023  
                 
 Taxes at federal statutory rate  $103,369   21% $1,370,497   21%
 State Taxes   48,564   10%  21,821   0%
 Deconsolidation adjustment   —   0%  (1,303,720)  -20%
 True Up Adjustment   (91,078)  -19%  (424,378)  -7%
                 
 Total income tax (benefit) expense  $60,855   12% $(335,780)  -5%

   The tax effects of temporary differences which give rise to significant portions of deferred tax assets are as follows as of  December 31:

       For The Years Ended  
   2024    2023  
 Deferred Tax Assets         
 Deferred Revenue  $—  $42,792 
 State Taxes   8   781 
 Fixed Asset   243,662   278,646 
 Start up costs   54,974   24,543 
 Total deferred tax asset   298,644   346,762 
         
 Deferred Tax Liabilities         
 Basis difference in investments   —   — 
 Net deferred tax assets   298,644   346,762 
         
 Valuation allowance   —   — 
 Net deferred tax assets (liability)  $298,644  $346,762 

        F-
       37

   Management assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets.  A significant piece of objective positive evidence evaluated was the history of cumulative income for Model Homes Inc. incurred over the three-year period ended  December 31, 2023. Such objective evidence provides support for no valuation allowance to be recorded for the year ended  December 31, 2023.
    
   The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions.  The Company is no longer subject to U.S. federal, state, and local or non-U.S. income tax examinations by tax authorities for years before 2020.
    
   In  December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic