Income Taxes and State LLC Fees

12 Months Ended

Dec. 31, 2019

Income Taxes and State LLC Fees [Abstract]

Income Taxes and State LLC Fees

Note 17. Income Taxes and State LLC Fees

MPIC is subject to a California gross receipts LLC fee of approximately $12,000 per year, and the state minimum franchise tax of $800 per year. MP Securities is subject to a California gross receipts LLC fee of approximately $6,000 and the state minimum franchise tax of $800 per year.  

MP Realty incurred a tax loss for the year ended December 31, 20182018, and recorded a provision of $800 per year for the state minimum franchise tax. For the years ended December 31, 2019 and 2018, MP Realty has federal and state net operating loss carryforwards of approximately $430 thousand and $40710 thousand, respectively, which begin to expire in 2030. Management assessed the realizability of the deferred tax asset and determined that a 100% valuation against the deferred tax asset was appropriate at December 31, 2019 and 2018.

Tax years ended December 31, 2016 through December 31, 2019 remain subject to examination by the Internal Revenue Service and the tax years ended December 31, 2015 through December 31, 2019 remain subject to examination by the California Franchise Tax Board.