What was the total income tax benefit for Precision Door Service in 2024?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
---------------------------|--| | Total current | 12,710 | | 20,569 | | | Deferred: Federal State Foreign | (18,525) (979) (1,147) | | (32,983) (5,619) (5,757) | | | Total deferred | (20,651) | | (44,359) | | | Total income tax benefit | $ (7,941) | $ | (23,790) | |
A reconciliation of the income tax benefit at statutory rates to the income tax benefit at effective is as follows:
| Federal income taxes at statutory rate | $ | (9,882) | $ | (97,180) |
|---|---|---|---|---|
| State taxes | 602 | (3,2 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the total income tax benefit for the year ending December 31, 2024, was approximately $(7,941). This figure represents the net effect of various factors, including federal income taxes at the statutory rate, state taxes, permanent differences, foreign currency adjustments, deferred balance adjustments, payables adjustments, and other items.
Specifically, the calculation includes a federal income tax impact of $(9,882), state taxes of $602, and permanent differences of $1,452. Other adjustments, such as foreign currency adjustments ($6), deferred balance adjustments ($63), payables adjustments ($(1,581)), and other items ($1,370), also contribute to the total income tax benefit.
It's important to note that the income tax benefit can fluctuate significantly from year to year due to changes in tax laws, business operations, and accounting practices. For instance, the total income tax benefit for the year ending December 31, 2023, was $(23,790), which is notably different from the 2024 figure. These fluctuations highlight the complexity of income tax calculations and the various factors that can influence a company's tax position.
Prospective franchisees should be aware that Precision Door Service's financial performance, including its income tax benefit, can impact the overall financial health of the company and, consequently, the franchise system. Reviewing these figures in the context of the company's complete financial statements is crucial for understanding the underlying trends and potential risks or opportunities.