CorEnergy Infrastructure Trust, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of deferred tax assets and liabilities

Components of the Company's deferred tax assets and liabilities as of December 31, 2017 and 2016, are as follows:



Deferred Tax Assets and Liabilities
	December 31, 2017			December 31, 2016
Deferred Tax Assets:
Net operating loss carryforwards	$	957,719		$	1,144,818
Net unrealized loss on investment securities	—			61,430
Cost recovery of leased and fixed assets	—			739,502
Loan Loss Provision	247,814			608,086
Basis reduction of investment in partnerships	261,549			—
Other loss carryforwards	2,965,321			3,187,181
Sub-total	$	4,432,403		$	5,741,017
Deferred Tax Liabilities:
Basis reduction of investment in partnerships	$	—		$	(2,158,746	)
Net unrealized gain on investment securities	(342,669		)	—
Cost recovery of leased and fixed assets	(1,845,105		)	(1,823,982		)
Sub-total	$	(2,187,774	)	$	(3,982,728	)
Total net deferred tax asset	$	2,244,629		$	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 years ended December 31, 2017, 2016 and 2015, to income or loss from operations and other income and expense for the years presented, as follows:



Income Tax Expense (Benefit)
	For the Years Ended December 31,
	2017			2016			2015
Application of statutory income tax rate	$	12,231,838		$	10,219,573		$	3,630,325
State income taxes, net of federal tax benefit	352,708			26,215			(134,597		)
Income of Real Estate Investment Trust not subject to tax	(11,975,853		)	(10,663,371		)	(5,189,849		)
Tax reform impact	1,262,444			—			—
Other	474,181			(46,837		)	(253,432		)
Total income tax expense (benefit)	$	2,345,318		$	(464,420	)	$	(1,947,553	)

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 Years Ended December 31,
	2017			2016			2015
Current tax expense (benefit)
Federal	$	2,498,363		$	(321,720	)	$	781,941
State (net of federal tax benefit)	333,295			8,613			140,069
Total current tax expense (benefit)	$	2,831,658		$	(313,107	)	$	922,010
Deferred tax expense (benefit)
Federal	$	(505,753	)	$	(168,915	)	$	(2,594,897	)
State (net of federal tax benefit)	19,413			17,602			(274,666		)
Total deferred tax benefit	$	(486,340	)	$	(151,313	)	$	(2,869,563	)
Total income tax expense (benefit), net	$	2,345,318		$	(464,420	)	$	(1,947,553	)

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
	December 31, 2017		December 31, 2016
Aggregate cost for federal income tax purposes	$	3,063,430	$	4,327,077
Gross unrealized appreciation	325,130		5,408,242
Gross unrealized depreciation	—		—
Net unrealized appreciation	$	325,130	$	5,408,242

Dividends declared and paid

The per share characterization by quarter is reflected in the following tables:



2017 Common Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
2/13/2017	2/9/2017	2/28/2017	$	0.7500	$	0.5925	$	0.0785	$	—	$	0.1575
5/16/2017	5/12/2017	5/31/2017	0.7500		0.5925		0.0785		—		0.1575
8/17/2017	8/15/2017	8/31/2017	0.7500		0.5925		0.0785		—		0.1575
11/15/2017	11/14/2017	11/30/2017	0.7500		0.5925		0.0785		—		0.1575
Total 2017 Distributions			$	3.0000	$	2.3700	$	0.3140	$	—	$	0.6300



2016 Common Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
02/12/2016	02/10/2016	02/29/2016	$	0.7500	$	0.2955	$	—	$	—	$	0.4545
05/13/2016	05/11/2016	05/31/2016	0.7500		0.2955		—		—		0.4545
08/17/2016	08/15/2016	08/31/2016	0.7500		0.2955		—		—		0.4545
11/15/2016	11/11/2016	11/30/2016	0.7500		0.2955		—		—		0.4545
Total 2016 Distributions			$	3.0000	$	1.1820	$	—	$	—	$	1.8180



2015 Common Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
02/13/2015	02/11/2015	02/27/2015	$	0.6500	$	0.4680	$	0.0126	$	—	$	0.1820
05/15/2015	05/13/2015	05/29/2015	0.6750		0.4860		0.0131		—		0.1890
08/17/2015	08/13/2015	08/31/2015	0.6750		0.4860		0.0131		—		0.1890
11/13/2015	11/11/2015	11/30/2015	0.7500		0.5400		0.0146		—		0.2100
Total 2015 Distributions			$	2.7500	$	1.9800	$	0.0534	$	—	$	0.7700

The per share characterization by quarter is reflected in the following table:



2017 Preferred Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
2/13/2017	2/9/2017	2/28/2017	$	0.4609	$	0.4609	$	0.0611	$	—	$	—
5/16/2017	5/12/2017	5/31/2017	0.4609		0.4609		0.0611		—		—
8/17/2017	8/15/2017	8/31/2017	0.4609		0.4609		0.0611		—		—
11/15/2017	11/14/2017	11/30/2017	0.4609		0.4609		0.0611		—		—
Total 2017 Distributions			$	1.8436	$	1.8436	$	0.2444	$	—	$	—



2016 Preferred Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
02/12/2016	02/10/2016	02/29/2016	$	0.4609	$	0.4609	$	—	$	—	$	—
05/13/2016	05/11/2016	05/31/2016	0.4609		0.4609		—		—		—
08/17/2016	08/15/2016	08/31/2016	0.4609		0.4609		—		—		—
11/15/2016	11/11/2016	11/30/2016	0.4609		0.4609		—		—		—
Total 2016 Distributions			$	1.8436	$	1.8436	$	—	$	—	$	—



2015 Preferred Stock Tax Information
Record Date	Ex-Dividend Date	Payable Date	Total Distribution per Share		Total Ordinary Dividends		Qualified Dividends		Capital Gain Distributions		Nondividend Distributions
05/15/2015	05/13/2015	06/01/2015	$	0.6351	$	0.6351	$	0.0171	$	—	$	—
08/17/2015	08/13/2015	08/31/2015	0.4609		0.4609		0.0124		—		—
11/13/2015	11/11/2015	11/30/2015	0.4609		0.4609		0.0124		—		—
Total 2015 Distributions			$	1.5569	$	1.5569	$	0.0419	$	—	$	—