Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 1894

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 12
Chunk 1894
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 entities, have elected to treat certain subsidiaries as a taxable REIT subsidiary (a “TRS”) for federal income tax purposes. Certain activities that we undertake must be conducted by a TRS, such as non-customary services for our tenants, and holding assets that we cannot hold directly. A TRS is subject to federal and state income taxes. The Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. Neither the Company nor its subsidiaries have been assessed any significant interest or penalties for tax positions by any tax jurisdictions.

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     Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

   The provision (benefit) for income taxes related to our TRS entities consists of the following for the years ended  December 31, 2024 and 2023:

       December 31, 2024    December 31, 2023  
 Current income tax expense (benefit)         
 Federal  $(17,835) $100,036 
 State   30,572   (89,054)
 Total current income tax expense (benefit)   12,737   10,982 
         
 Deferred income tax expense (benefit)         
 Federal   40,279   (289,480)
 State   7,839   (57,282)
 Total deferred income tax expense (benefit)   48,118   (346,762)
         
 Change in Valuation Allowance   —   — 
 Total income tax (benefit) expense  $60,855  $(335,780)

   Income tax provision differed from the amount computed by applying the U.S. federal income tax rate of 21% to income (loss) before taxes, as follows:

       December 31, 2024    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,