Company: SQFTP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001437749-25-016828
Chunk: 75

Company: Presidio Property Trust, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 Properties:         
 Capital expenditures and tenant improvements, retail   —   148,084 
 Totals:         
 Acquisition of operating properties, net   4,270,192   2,238,497 
 Capital expenditures and tenant improvements   360,708   1,032,448 
 Total real estate investments  $4,630,900  $3,270,945 

   14. INCOME TAX PROVISION
    
   We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended  December 31, 2000. As a REIT, U.S. federal income tax law generally requires us to distribute annually at least 90% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that we pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our net taxable income. We are also subject to U.S. federal, state and local income taxes on our domestic taxable REIT subsidiaries ("TRS") based on the tax jurisdictions in which they operate.
    
   During the three months ended  March 31, 2025 and 2024, we recorded a current income tax provision(benefit) of $25,409 and $79,565, respectively, related to activities of our taxable REIT subsidiaries. There was a $0.3 million and $0.3 million income tax asset related to the operating activities of our TRS entities as of  March 31, 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