| Components of deferred tax assets and liabilities |
Components of the Company's deferred tax assets and liabilities as of March 31, 2020 and December 31, 2019, are as follows:
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|
|
|
|
|
|
Deferred Tax Assets and Liabilities |
|
March 31, 2020 |
|
December 31, 2019 |
Deferred Tax Assets: |
|
|
|
Deferred contract revenue |
$ |
1,494,179 |
|
|
$ |
1,529,473 |
|
Net operating loss carryforwards |
5,850,717 |
|
|
5,622,052 |
|
Accrued liabilities |
20,645 |
|
|
424,604 |
|
Capital loss carryforward |
92,418 |
|
|
104,595 |
|
Other |
6,184 |
|
|
6,184 |
|
Sub-total |
$ |
7,464,143 |
|
|
$ |
7,686,908 |
|
Valuation allowance |
(92,418 |
) |
|
(104,595 |
) |
Sub-total |
$ |
7,371,725 |
|
|
$ |
7,582,313 |
|
Deferred Tax Liabilities: |
|
|
|
Cost recovery of leased and fixed assets |
$ |
(3,108,220 |
) |
|
$ |
(2,953,319 |
) |
Other |
(39,865 |
) |
|
(35,433 |
) |
Sub-total |
$ |
(3,148,085 |
) |
|
$ |
(2,988,752 |
) |
Total net deferred tax asset |
$ |
4,223,640 |
|
|
$ |
4,593,561 |
|
|
| Total income tax expense |
Total income tax expense (benefit) differs from the amount computed by applying the federal statutory income tax rate of 21 percent for the three months ended March 31, 2020 and 2019 to income from operations and other income and expense for the periods presented, as follows:
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Income Tax Expense (Benefit) |
|
For the Three Months Ended |
|
March 31, 2020 |
|
March 31, 2019 |
Application of statutory income tax rate |
$ |
1,744,493 |
|
|
$ |
905,893 |
|
State income taxes, net of federal tax expense |
34,509 |
|
|
516,026 |
|
Federal Tax Attributable to Income of Real Estate Investment Trust |
(1,644,238 |
) |
|
(915,985 |
) |
Other |
(159,486 |
) |
|
(58,599 |
) |
Total income tax expense (benefit) |
$ |
(24,722 |
) |
|
$ |
447,335 |
|
|
| Components of income tax expense |
The components of income tax expense (benefit) include the following for the periods presented:
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Components of Income Tax Expense (Benefit) |
|
For the Three Months Ended |
|
March 31, 2020 |
|
March 31, 2019 |
Current tax expense (benefit) |
|
|
|
Federal |
$ |
(409,643 |
) |
|
$ |
216,093 |
|
State (net of federal tax expense (benefit)) |
15,000 |
|
|
137,651 |
|
Total current tax expense (benefit) |
$ |
(394,643 |
) |
|
$ |
353,744 |
|
Deferred tax expense (benefit) |
|
|
|
Federal |
$ |
350,412 |
|
|
$ |
(284,784 |
) |
State (net of federal tax expense (benefit)) |
19,509 |
|
|
378,375 |
|
Total deferred tax expense |
$ |
369,921 |
|
|
$ |
93,591 |
|
Total income tax expense (benefit), net |
$ |
(24,722 |
) |
|
$ |
447,335 |
|
|