Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.1.9
Income Taxes (Tables)
3 Months Ended
Mar. 31, 2015
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, 2015, and December 31, 2014, are as follows:
Deferred Tax Assets and Liabilities
 
 
March 31, 2015
 
December 31, 2014
Deferred Tax Assets:
 
 
 
 
Net operating loss carryforwards
 
$
(1,033,385
)
 
$
(679,692
)
Cost recovery of leased and fixed assets
 
(795,444
)
 
(1,042,207
)
Sub-total
 
$
(1,828,829
)
 
$
(1,721,899
)
Deferred Tax Liabilities:
 
 
 
 
Basis reduction of investment in partnerships
 
$
2,661,415

 
$
2,842,332

Net unrealized gain on investment securities
 
314,610

 
142,154

Sub-total
 
2,976,025

 
2,984,486

Total net deferred tax liability
 
$
1,147,196

 
$
1,262,587

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, 2015, and March 31, 2014, 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, 2015
 
March 31, 2014
Application of statutory income tax rate
 
$
1,553,434

 
$
918,346

State income taxes, net of federal tax benefit
 
37,051

 
42,979

Federal Tax Attributable to Income of Real Estate Investment Trust
 
(1,270,120
)
 
(447,812
)
Total income tax expense
 
$
320,365

 
$
513,513

Components of income tax expense
For the three months ended March 31, 2015, all of the income tax expense presented above relates to the assets and activities held in the Company's TRSs. 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, 2015
 
March 31, 2014
Current tax expense
 
 
 
 
Federal
 
$
391,946

 
$
784,377

State (net of federal tax benefit)
 
43,810

 
69,698

Total current tax expense
 
435,756

 
854,075

Deferred tax benefit
 
 
 
 
Federal
 
(108,632
)
 
(313,843
)
State (net of federal tax benefit)
 
(6,759
)
 
(26,719
)
Total deferred tax benefit
 
(115,391
)
 
(340,562
)
Total income tax expense, net
 
$
320,365

 
$
513,513


A
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, 2015
 
December 31, 2014
Aggregate cost for federal income tax purposes
 
$
5,152,653

 
$
4,218,986

Gross unrealized appreciation
 
7,649,287

 
7,436,696

Net unrealized appreciation
 
$
7,649,287

 
$
7,436,696