Income Taxes

12 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

Note 8:  Income Taxes

The provisions for income taxes for the years ended September 30, 2024 and 2023 are comprised of the following:

		September 30
		2024			2023
Current:
Federal	$	297,000		$	229,000
State		169,000			99,000
		466,000			328,000
Deferred:
Federal		41,000			5,000
State		(12,000	)		10,000
		29,000			15,000
Total	$	495,000		$	343,000

The provision for income taxes differs from the amount of income tax computed by applying the federal statutory income tax rate to income before taxes is a result of the following differences:
 

		Year Ended September 30,
		2024			2023
Statutory federal tax rate		338,000			280,000
Non-deductible costs of shareholder usage		44,000			40,000
Provision to return adjustment		(2,000	)		(63,000	)
Impact of state taxes, net		115,000			86,000
Total	$	495,000		$	343,000

At September 30, 2024 and 2023, the deferred income tax liabilities consisted of the following:

		Year Ended September 30,
		2024			2023
Deferred tax assets (liabilities):
Federal		(423,000	)		(382,000	)
State		(45,000	)		(57,000	)
Total	$	(468,000	)	$	(439,000	)

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The majority of the balance is due to timing differences of depreciation expense, caused by the use of accelerated depreciation methods for tax calculations. 

At September 30, 2024 and 2023, the deferred income tax liabilities consisted of the following temporary differences:

		Year Ended September 30,
		2024			2023
Depreciation	$	(565,000	)	$	(479,000	)
Right-of-use asset		116,000			-
Lease liability		(116,000	)		-
Vacation accrual		14,000			1,000
Allowances		38,000			-
Federal benefit of state taxes		45,000			39,000
	$	(468,000	)	$	(439,000	)

There were no net operating loss or tax credit carryforwards for the years ended September 30, 2024 or 2023 for federal or state.

35

Pismo Coast Village, Inc.
Notes to Financial Statements
September 30, 2024 and 2023