Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2014
Income Tax Disclosure [Abstract]  
Components of deferred tax assets and liabilities
Components of the Company’s deferred tax assets and liabilities as of June 30, 2014 and December 31, 2013 are as follows:
Deferred Tax Assets and Liabilities
 
 
June 30, 2014
 
December 31, 2013
Deferred Tax Assets:
 
 
 
 
Net operating loss carryforwards
 
$
(147,650
)
 
$
(65,248
)
Cost recovery of leased and fixed assets
 
(891,550
)
 
(966,914
)
Sub-total
 
$
(1,039,200
)
 
$
(1,032,162
)
Deferred Tax Liabilities:
 
 
 
 
Basis reduction of investment in partnerships
 
$
5,481,732

 
$
6,335,805

Net unrealized gain on investment securities
 
1,291,873

 
28,444

Sub-total
 
6,773,605

 
6,364,249

Total net deferred tax liability
 
$
5,734,405

 
$
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 and six months ended June 30, 2014 and June 30, 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
 
For the Six Months Ended
 
 
June 30, 2014
 
June 30, 2013
 
June 30, 2014
 
June 30, 2013
Application of statutory income tax rate
 
$
1,310,265

 
$
109,139

 
$
2,228,611

 
$
1,310,934

State income taxes, net of federal tax benefit
 
59,790

 
9,568

 
102,769

 
71,839

Federal Tax Attributable to Income of Real Estate Investment Trust
 
(627,176
)
 
123,047

 
(1,074,988
)
 
(120,075
)
Total income tax expense
 
$
742,879

 
$
241,754

 
$
1,256,392

 
$
1,262,698

Components of income tax expense
e components of income tax expense include the following for the periods presented:
Components of Income Tax Expense (Benefit)
 
 
For the Three Months Ended
 
For the Six Months Ended
 
 
June 30, 2014
 
June 30, 2013
 
June 30, 2014
 
June 30, 2013
Current tax expense (benefit)
 
 
 
 
 
 
 
 
Federal
 
$

 
$
546,816

 
$
784,377

 
$
815,021

State (net of federal tax benefit)
 

 
34,941

 
69,698

 
52,627

Total current tax expense (benefit)
 

 
581,757

 
854,075

 
867,648

Deferred tax expense (benefit)
 
 
 
 
 
 
 
 
Federal
 
683,089

 
(314,630
)
 
369,246

 
375,838

State (net of federal tax benefit)
 
59,790

 
(25,373
)
 
33,071

 
19,212

Total deferred tax expense (benefit)
 
742,879

 
(340,003
)
 
402,317

 
395,050

Total income tax expense, net
 
$
742,879

 
$
241,754

 
$
1,256,392

 
$
1,262,698


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
 
 
June 30, 2014
 
December 31, 2013
Aggregate cost for federal income tax purposes
 
$
8,012,960

 
$
6,604,635

Gross unrealized appreciation
 
17,773,825

 
16,699,686

Net unrealized appreciation
 
$
17,773,825

 
$
16,699,686