What was the income tax expense for 1-800-GOT-JUNK? for the period ended May 31, 2024?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the total income tax expense for the period ended May 31, 2024, was $32,952. This figure is broken down into two components: current income tax expense, which was $0, and deferred income tax expense, which was $32,952.

For a prospective 1-800-GOT-JUNK? franchisee, understanding the income tax expense is crucial for assessing the overall profitability and financial health of the franchisor. It provides insight into how 1-800-GOT-JUNK? manages its tax obligations and can indicate potential tax-related risks or benefits. The deferred income tax expense suggests that there are temporary differences between the book value of assets and liabilities and their tax bases, which could impact future tax liabilities or assets.

Additionally, the notes to the financial statements provide further details on income taxes. Specifically, the provision for income taxes is based on a combined federal and state income tax rate of 26.74% for the year 2024. This information helps in understanding the tax environment in which 1-800-GOT-JUNK? operates and allows potential franchisees to compare this rate with their own expected tax rates in their respective locations. The notes also mention that the LLC is no longer subject to U.S. federal or state income tax examinations for fiscal years prior to December 31, 2019, which could be a positive indicator of the company's tax compliance history.

Overall, while the income tax expense itself is a relatively small figure, the details surrounding it, such as the tax rate and the nature of deferred taxes, are important for a comprehensive financial analysis. A potential franchisee should consult with a financial advisor to fully understand the implications of these tax-related items.