Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Components of deferred tax assets and liabilities
Components of the Company’s deferred tax assets and liabilities as of September 30, 2017 and December 31, 2016, are as follows:
Deferred Tax Assets and Liabilities
 
September 30, 2017
 
December 31, 2016
Deferred Tax Assets:
 
 
 
Net operating loss carryforwards
$
1,735,011

 
$
1,144,818

Net unrealized loss on investment securities

 
61,430

Cost recovery of leased and fixed assets
636,614

 
739,502

Loan Loss Provision
385,180

 
608,086

Other loss carryforwards
4,404,525

 
3,187,181

Sub-total
$
7,161,330

 
$
5,741,017

Deferred Tax Liabilities:
 
 
 
Basis reduction of investment in partnerships
$
(2,191,957
)
 
$
(2,158,746
)
Net unrealized gain on investment securities
(485,610
)
 

Cost recovery of leased and fixed assets
(2,591,152
)
 
(1,823,982
)
Sub-total
$
(5,268,719
)
 
$
(3,982,728
)
Total net deferred tax asset
$
1,892,611

 
$
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 and nine months ended September 30, 2017 and 2016 to income from operations and other income and expense for the periods presented, as follows:
Income Tax Expense (Benefit)
 
For the Three Months Ended
 
For the Nine Months Ended
 
September 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
Application of statutory income tax rate
$
3,279,099

 
$
3,400,018

 
$
9,005,926

 
$
7,425,354

State income taxes, net of federal tax expense (benefit)
8,784

 
28,642

 
(22,867
)
 
(29,384
)
Federal Tax Attributable to Income of Real Estate Investment Trust
(3,096,312
)
 
(2,945,508
)
 
(9,028,359
)
 
(7,757,506
)
Total income tax expense (benefit)
$
191,571

 
$
483,152

 
$
(45,300
)
 
$
(361,536
)
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
 
For the Nine Months Ended
 
September 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
Current tax expense (benefit)
 
 
 
 
 
 
 
Federal
$
58,303

 
$
88,032

 
$
79,865

 
$
(350,698
)
State (net of federal tax benefit)
6,828

 
7,093

 
9,157

 
(28,256
)
Total current tax expense (benefit)
$
65,131

 
$
95,125

 
$
89,022

 
$
(378,954
)
Deferred tax expense (benefit)
 
 
 
 
 
 

Federal
$
124,484

 
$
366,478

 
$
(102,298
)
 
$
18,546

State (net of federal tax benefit)
1,956

 
21,549

 
(32,024
)
 
(1,128
)
Total deferred tax expense (benefit)
$
126,440

 
$
388,027

 
$
(134,322
)
 
$
17,418

Total income tax expense (benefit), net
$
191,571

 
$
483,152

 
$
(45,300
)
 
$
(361,536
)

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
 
September 30, 2017
 
December 31, 2016
Aggregate cost for federal income tax purposes
$
3,985,264

 
$
4,327,077

Gross unrealized appreciation
6,904,503

 
5,408,242

Gross unrealized depreciation

 

Net unrealized appreciation
$
6,904,503

 
$
5,408,242