TAXES

9 Months Ended

Sep. 30, 2025

NOTE 13 — TAXES

Corporate Income Taxes

Massimo Motor and Massimo Marine were incorporated in the United States and are subject to a statutory income tax rate at 21%.

As of September 30, 2025 and December 31, 2024, the Company did not have an accrued liability for uncertain tax positions and does not anticipate recognition of any significant liabilities for uncertain tax positions during the next 12 months. For the three and nine months ended September 30, 2025 and 2024, no amounts were incurred for income tax uncertainties or interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company’s tax years since its formation remain subject to possible income tax examination by its major taxing authorities for all periods. The Company’s effective tax rate for the three and nine months ended September 30, 2025 and 2024 are 21.20%, 17.37%, 19.90% and 23.81% respectively.

The provision for income tax consists of the following:

SCHEDULE OF INCOME TAX PROVISION

	2025		2024			2025			2024
	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2025		2024			2025			2024

Income tax provision – current	$	3,842	$	55,782		$	12,840		$	2,067,219
Income tax (recovery) - deferred		406,775		(677,447	)		(114,722	)		(974,691	)
Income tax provision	$	410,617	$	(621,665	)	$	(101,882	)	$	1,092,528

The following table reconciles the statutory tax rate to the Company’s effective tax:

	2025			2024			2025			2024
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024

Net (loss) income before income taxes	$	1,937,024		$	(3,123,898	)	$	(586,503	)	$	4,587,607
Income tax at the federal statutory rate		21	%		21	%		21	%		21	%
Statutory U.S. federal income tax (recovery) provision		406,775			(656,018	)		(123,166	)		963,398
S Corporation benefits		-			-			-			-
State margin tax		3,842			17,736			12,840			101,473
Non-deductible expense		-			16,617			8,444			27,657
Other adjustments		-			-			-			-
Total	$	410,617		$	(621,665	)	$	(101,882	)	$	1,092,528

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 13 — TAXES

Corporate Income Taxes (continued)

The Company’s deferred tax assets and liabilities consist of the following:

	September 30, 2025			December 31, 2024
Deferred tax assets:
Allowance for credit loss	$	79,375		$	80,680
Property and equipment		16,480			16,480
Lease liability – operating		1,670,418			2,001,843
Lease liability – financing		9,372			16,175
Loss carried forward		167,429
Other temporary difference		968,988			1,018,553
Total deferred tax assets		2,912,062			3,133,731
Deferred tax liabilities:
Right of use assets – operating		(1,662,138	)		(1,992,039	)
Right of use assets – financing		(8,587	)		(15,078	)
Total deferred tax liabilities		(1,670,725	)		(2,007,117	)
Deferred tax assets (liabilities), net	$	1,241,337		$	1,126,614

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Massimo Group 10-Q