What was the amount of deferred income tax assets for 1-800-GOT-JUNK? as of December 31, 2024?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Deferred income tax assets: Deferred income tax assets reflect the net income tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for income tax purposes. The components of the deferred income tax assets are as follows:
Deferred income tax assets: Deferred revenue $ 257,678 $ 296,247 Accrued license fee 670,450 436,270 Allowance for credit losses 28,351 84,105 Non-operating loss 1,044,395 1,134,984 Other 212,628 123,503
$ 2,213,502 $ 2,075,109
The LLC has non-capital losses totalling $3,905,947 (2023 - $4,252,303) which are available to reduce its taxable income in future years. The non-capital losses can be carried forward indefinitely, but the loss utilization will be limited to 80% of taxable income. Deferred income tax assets are carried at their estimated net realizable value. Management considers the scheduled realization of deferred income tax assets, projected future taxable income and tax planning strategies when assessing net realizable value. Carrying values of deferred income tax assets are subject to change in the event that management’s estimates of taxable income through the carry-forward period change.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the company's deferred income tax assets totaled $2,213,502 as of December 31, 2024. This figure represents the net effect of temporary differences between the book value of assets and liabilities for financial reporting and their corresponding values for income tax purposes. In 2023, the deferred income tax assets totaled $2,075,109.
The deferred income tax assets are composed of several components. These include deferred revenue ($257,678), accrued license fees ($670,450), allowance for credit losses ($28,351), non-operating loss ($1,044,395), and other items ($212,628). These figures provide a detailed breakdown of the factors contributing to the overall deferred tax asset position of 1-800-GOT-JUNK?.
Additionally, 1-800-GOT-JUNK? had non-capital losses totaling $3,905,947 in 2024, which are available to reduce its taxable income in future years. These losses can be carried forward indefinitely, but their utilization is limited to 80% of taxable income. The deferred income tax assets are carried at their estimated net realizable value, which is determined by management's assessment of scheduled realization, projected future taxable income, and tax planning strategies. These values are subject to change based on management's estimates of taxable income during the carry-forward period. This indicates that the actual benefit realized from these deferred tax assets may vary depending on future financial performance and tax law changes.