What was the total deferred income tax expense (benefit) for My Salon Suite in 2022?
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 |
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 benefit for the year 2022 was $(526,186). This figure represents the combined federal and state deferred income tax benefits. The federal deferred tax benefit was $(425,487), and the state deferred tax benefit was $(100,699).
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 benefit indicates that My Salon Suite has future tax deductions or credits available to reduce its future income tax obligations.
For a prospective My Salon Suite franchisee, understanding deferred income taxes is crucial for assessing the overall financial health and tax planning strategies of the company. While a deferred tax benefit can be seen as a positive indicator, it is important to consider the underlying reasons for these deferred taxes and how they might impact future tax liabilities. Consulting with a financial advisor is recommended to fully understand the implications of deferred income taxes on My Salon Suite's financial performance.