Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
3 Months Ended
Mar. 31, 2014
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, 2014 and December 31, 2013 are as follows:
Deferred Tax Assets and Liabilities
 
 
March 31, 2014
 
December 31, 2013
Deferred Tax Assets:
 
 
 
 
Net operating loss carryforwards
 
$
(82,631
)
 
$
(65,248
)
Cost recovery of leased and fixed assets
 
(929,232
)
 
(966,914
)
Sub-total
 
$
(1,011,863
)
 
$
(1,032,162
)
Deferred Tax Liabilities:
 
 
 
 
Basis reduction of investment in partnerships
 
$
5,481,732

 
$
6,335,805

Net unrealized gain on investment securities
 
521,657

 
28,444

Sub-total
 
6,003,389

 
6,364,249

Total net deferred tax liability
 
$
4,991,526

 
$
5,332,087

Total income tax expense
Total income tax expense differs from the amount computed by applying the federal statutory income tax rate of 35 percent for the three months ended March 31, 2014 and March 31, 2013 to income or loss from operations and other income and expense for the years presented, as follows:
Income Tax Expense (Benefit)
 
 
For the Three Months Ended
 
 
March 31, 2014
 
March 31, 2013
Application of statutory income tax rate
 
$
918,346

 
$
1,201,795

State income taxes, net of federal tax benefit
 
42,979

 
62,270

Federal Tax Attributable to Income of Real Estate Investment Trust
 
(447,812
)
 
(243,121
)
Total income tax expense
 
$
513,513

 
$
1,020,944

Components of income tax expense
The components of income tax expense include the following for the periods presented:
Components of Income Tax Expense (Benefit)
 
 
For the Three Months Ended
 
 
March 31, 2014
 
March 31, 2013
Current tax expense (benefit)
 
 
 
 
Federal
 
$
784,377

 
$
268,205

State (net of federal tax benefit)
 
69,698

 
17,686

Total current tax expense (benefit)
 
854,075

 
285,891

Deferred tax expense (benefit)
 
 
 
 
Federal
 
(313,843
)
 
690,468

State (net of federal tax benefit)
 
(26,719
)
 
44,585

Total deferred tax expense (benefit)
 
(340,562
)
 
735,053

Total income tax expense, net
 
$
513,513

 
$
1,020,944

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
 
 
March 31, 2014
 
December 31, 2013
Aggregate cost for federal income tax purposes
 
$
8,354,452

 
$
6,604,636

Gross unrealized appreciation
 
15,752,791

 
16,699,686

Net unrealized appreciation
 
$
15,752,791

 
$
16,699,686