Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v3.7.0.1
Income Taxes (Tables)
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Components of deferred tax assets and liabilities
Components of the Company’s deferred tax assets and liabilities as of March 31, 2017, and December 31, 2016, are as follows:
Deferred Tax Assets and Liabilities
 
 
March 31, 2017
 
December 31, 2016
Deferred Tax Assets:
 
 
 
 
Net operating loss carryforwards
 
$
1,209,892

 
$
1,144,818

Net unrealized loss on investment securities
 
272,474

 
61,430

Cost recovery of leased and fixed assets
 
705,505

 
739,502

Loan Loss Provision
 
608,086

 
608,086

Other loss carryforwards
 
3,536,701

 
3,187,181

Sub-total
 
$
6,332,658

 
$
5,741,017

Deferred Tax Liabilities:
 
 
 
 
Basis reduction of investment in partnerships
 
$
(2,195,747
)
 
$
(2,158,746
)
Cost recovery of leased and fixed assets
 
(2,079,776
)
 
(1,823,982
)
Sub-total
 
$
(4,275,523
)
 
$
(3,982,728
)
Total net deferred tax asset
 
$
2,057,135

 
$
1,758,289

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 three months ended March 31, 2017 and 2016, to income or loss from operations and other income and expense for the periods presented, as follows:
Income Tax Expense (Benefit)
 
 
For the Three Months Ended
 
 
March 31, 2017
 
March 31, 2016
Application of statutory income tax rate
 
$
2,567,905

 
$
747,599

State income taxes, net of federal tax (benefit)
 
(35,437
)
 
(83,260
)
Federal Tax Attributable to Income of Real Estate Investment Trust
 
(2,865,074
)
 
(1,919,465
)
Total income tax expense (benefit)
 
$
(332,606
)
 
$
(1,255,126
)
Components of income tax expense
The components of income tax expense/(benefit) include the following for the periods presented:
Components of Income Tax Expense (Benefit)
 
 
For the Three Months Ended
 
 
March 31, 2017
 
March 31, 2016
Current tax expense (benefit)
 
 
 
 
Federal
 
$
(30,469
)
 
$
(627,197
)
State (net of federal tax benefit)
 
(3,291
)
 
(50,534
)
Total current tax expense (benefit)
 
$
(33,760
)
 
$
(677,731
)
Deferred tax expense (benefit)
 
 
 
 
Federal
 
$
(266,700
)
 
$
(544,669
)
State (net of federal tax benefit)
 
(32,146
)
 
(32,726
)
Total deferred tax expense (benefit)
 
$
(298,846
)
 
$
(577,395
)
Total income tax expense (benefit), net
 
$
(332,606
)
 
$
(1,255,126
)

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)
 
 
March 31, 2017
 
December 31, 2016
Aggregate cost for federal income tax purposes
 
$
4,049,249

 
$
4,327,077

Gross unrealized appreciation
 
4,959,447

 
5,408,242

Gross unrealized depreciation
 

 

Net unrealized appreciation
 
$
4,959,447

 
$
5,408,242