CorEnergy Infrastructure Trust, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of deferred tax assets and liabilities

Components of the Company’s deferred tax assets and liabilities as of December 31, 2016, and December 31, 2015, are as follows:



Deferred Tax Assets and Liabilities
	December 31, 2016			December 31, 2015
Deferred Tax Assets:
Net operating loss carryforwards	$	1,144,818		$	543,116
Net unrealized loss on investment securities	61,430			251,539
Loan Loss Provision	608,086			1,257,436
Other loss carryforwards	3,187,181			1,833,240
Sub-total	$	5,001,515		$	3,885,331
Deferred Tax Liabilities:
Basis reduction of investment in partnerships	$	(2,158,746	)	$	(2,159,058	)
Cost recovery of leased and fixed assets	(1,084,480		)	(119,297		)
Sub-total	$	(3,243,226	)	$	(2,278,355	)
Total net deferred tax asset	$	1,758,289		$	1,606,976

Total income tax expense

Total income tax expense/(benefit) differs from the amount computed by applying the federal statutory income tax rate of 35 percent, for the years ended December 31, 2016, 2015 and 2014, to income or loss from operations and other income and expense for the years presented, as follows:



Income Tax Benefit
	For the Years Ended December 31,
	2016			2015			2014
Application of statutory income tax rate	$	10,219,573		$	3,630,325		$	2,375,903
State income taxes, net of federal tax benefit	26,215			(134,597		)	(47,731		)
Income of Real Estate Investment Trust not subject to tax	(10,663,371		)	(5,189,849		)	(2,607,207		)
Other	(46,837		)	(253,432		)	53,472
Total income tax benefit	$	(464,420	)	$	(1,947,553	)	$	(225,563	)

Components of income tax expense

The components of income tax expense/(benefit) include the following for the periods presented:



Components of Income Tax Benefit
	For the Years Ended December 31,
	2016			2015			2014
Current tax expense (benefit)
Federal	$	(321,720	)	$	781,941		$	3,456,858
State (net of federal tax benefit)	8,613			140,069			387,079
Total current tax expense (benefit)	$	(313,107	)	$	922,010		$	3,843,937
Deferred tax benefit
Federal	$	(168,915	)	$	(2,594,897	)	$	(3,634,689	)
State (net of federal tax benefit)	17,602			(274,666		)	(434,811		)
Total deferred tax benefit	$	(151,313	)	$	(2,869,563	)	$	(4,069,500	)
Total income tax benefit, net	$	(464,420	)	$	(1,947,553	)	$	(225,563	)

Aggregate cost of securities for federal income tax purposes and securities with unrealized appreciation and depreciation

The aggregate cost of securities for federal income tax purposes and securities with unrealized appreciation and depreciation, were as follows:



Aggregate Cost of Securities for Income Tax Purposes (unaudited)
	December 31, 2016		December 31, 2015
Aggregate cost for federal income tax purposes	$	4,327,077	$	4,750,252
Gross unrealized appreciation	5,408,242		5,133,908
Gross unrealized depreciation	—		(97,500		)
Net unrealized appreciation	$	5,408,242	$	5,036,408

Schedule of dividends payable

The per share characterization by quarter is reflected in the following table:



2016 Preferred Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
02/12/2016	02/10/2016	02/29/2016	$	0.4609	$	0.4609	$	—	$	—	$	—
05/13/2016	05/11/2016	05/31/2016	0.4609		0.4609		—		—		—
08/17/2016	08/15/2016	08/31/2016	0.4609		0.4609		—		—		—
11/15/2016	11/11/2016	11/30/2016	0.4609		0.4609		—		—		—
Total 2016 Distributions			$	1.8436	$	1.8436	$	—	$	—	$	—



2015 Preferred Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
05/15/2015	05/13/2015	06/01/2015	$	0.6351	$	0.6351	$	0.0171	$	—	$	—
08/17/2015	08/13/2015	08/31/2015	0.4609		0.4609		0.0124		—		—
11/13/2015	11/11/2015	11/30/2015	0.4609		0.4609		0.0124		—		—
Total 2015 Distributions			$	1.5569	$	1.5569	$	0.0419	$	—	$	—

The per share characterization by quarter is reflected in the following tables:



2016 Common Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
02/12/2016	02/10/2016	02/29/2016	$	0.7500	$	0.2955	$	—	$	—	$	0.4545
05/13/2016	05/11/2016	05/31/2016	0.7500		0.2955		—		—		0.4545
08/17/2016	08/15/2016	08/31/2016	0.7500		0.2955		—		—		0.4545
11/15/2016	11/11/2016	11/30/2016	0.7500		0.2955		—		—		0.4545
Total 2016 Distributions			$	3.0000	$	1.1820	$	—	$	—	$	1.8180



2015 Common Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
02/13/2015	02/11/2015	02/27/2015	$	0.6500	$	0.4680	$	0.0126	$	—	$	0.1820
05/15/2015	05/13/2015	05/29/2015	0.6750		0.4860		0.0131		—		0.1890
08/17/2015	08/13/2015	08/31/2015	0.6750		0.4860		0.0131		—		0.1890
11/13/2015	11/11/2015	11/30/2015	0.7500		0.5400		0.0146		—		0.2100
Total 2015 Distributions			$	2.7500	$	1.9800	$	0.0534	$	—	$	0.7700



2014 Common Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
01/13/2014	01/09/2014	01/23/2014	$	0.6250	$	0.4640	$	0.2250	$	—	$	0.1610
05/14/2014	05/12/2014	05/22/2014	0.6450		0.4790		0.2320		—		0.1660
08/15/2014	08/13/2014	08/29/2014	0.6500		0.4825		0.2335		—		0.1675
11/14/2014	11/12/2014	11/28/2014	0.6500		0.4825		0.2335		—		0.1675
Total 2014 Distributions			$	2.5700	$	1.9080	$	0.9240	$	—	$	0.6620