What was the total deferred income tax expense for My Salon Suite in 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
inancial statements.
9. Income Taxes
The expense (benefit) for income taxes consists of the following for the years ended December 31:
| 2023 | 2022 | |
|---|---|---|
| Current Federal State Foreign | $ 7,383,607 1,182,311 194,807 | $ 4,819,044 410,927 221,329 |
| Total | 8,760,725 | 5,451,300 |
| current | ||
| Deferred: Federal State | 147,498 34,769 | (425,487 ) (100,699 ) |
| Total | 182,267 | (526,186 |
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the total deferred income tax expense for the company in 2023 was $182,267. This figure represents the sum of federal and state deferred tax amounts, which were $147,498 and $34,769, respectively.
Deferred income taxes arise from temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements. These differences result in taxable or deductible amounts in future years when the assets are recovered or the liabilities are settled. A deferred tax asset is recognized for deductible temporary differences, while a deferred tax liability is recognized for taxable temporary differences.
For a prospective My Salon Suite franchisee, understanding these figures is crucial for assessing the company's financial health and stability. Deferred tax expenses can impact the overall profitability of the company, and franchisees should consider these factors when evaluating the franchise opportunity. It is advisable for potential franchisees to consult with a financial advisor to fully understand the implications of deferred income taxes on My Salon Suite's financial performance.