What was the total deferred income tax benefit (provision) for 1 800 Packouts in 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
nce costs | | 206,519 | 851,000 | | Total current liabilities | | 8,793,496 | 6,994,472 | | Contract | | 20,994,540 | 17,393,479 | | liabilities, | | | | | net | | | | | of | | | | | current | | | | | portion | | | | | Operating lease liabilities, net of current portion | | 1,321,919 | 1,070,182 | | Long-term debt, net of current portion and debt issuance costs | | 46,197,321 | 46,148,366 | | | | | |
Deferred income tax liabilities 4,942,067 5,507,405
| Total liabilities | 82,249,343 | 77,113,904 |
|---|---|---|
| Commitments and contingencies (Notes 4, 5 & 6) | ||
| Members' equity | 47,328,038 | 61,292,873 |
| Total liabilities and members' equity | $ 129,577,381 | $ 138,406,777 |
For the Years Ended December 31,
| | 2024 | 2023 | |-------------------------------------------------------------------
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the total benefit (provision) for income taxes was $432,399 in 2024. This figure reflects the overall impact of income taxes on the company's financial performance for that year.
Specifically, this number represents the sum of both current and deferred tax components. It indicates the net effect of taxes on 1 800 Packouts' earnings, taking into account both taxes payable in the current period and those deferred to future periods. For a prospective franchisee, this figure provides insight into the company's tax management and its impact on net income.
It's important to note that this benefit (provision) can fluctuate from year to year, as evidenced by the fact that in 2023, the total benefit (provision) for income taxes was $(765,698). These fluctuations can arise from changes in profitability, tax laws, or accounting practices. Understanding these factors can help a franchisee assess the financial stability and tax efficiency of 1 800 Packouts.
Furthermore, the FDD states that the benefit (provision) for income taxes is impacted by items such as tax rate adjustments, state taxes, permanent differences in deductible goodwill amortization, and prior period adjustments. These elements contribute to the difference between the expected tax expense based on the federal statutory income tax rate and the actual income tax benefit (provision) reported.