Annual report pursuant to Section 13 and 15(d)

Note 6 - Income Taxes

v2.4.0.6
Note 6 - Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Tax Disclosure [Text Block]
(6)       Income Taxes

The Trust is taxed as if it were a corporation. Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to income before Federal income taxes as a result of the following:

   
2011
   
2010
   
2009
 
Computed tax expense at the statutory rate
  $ 10,457,012     $ 5,584,222     $ 3,415,219  
Reduction in income taxes resulting from:
                       
Statutory depletion
    (802,104 )     (614,358 )     (467,834 )
State taxes
    238,860       140,559       197,767  
Other, net
    267,381       5,047       (14,432 )
    $ 10,161,149     $ 5,115,470     $ 3,130,720  


The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2011 and 2010 are as follows:

   
2011
   
2010
 
Basis difference in pension plan liability
  $ 183,590     $ 148,357  
Total deferred tax assets
    183,590       148,357  
                 
Basis differences in real estate acquired through foreclosure
    226,378       226,378  
Deferred installment revenue on land sales for tax purposes
    2,910,915       4,204,712  
Total deferred tax liability
    3,137,293       4,431,090  
Net deferred tax liability
  $ 2,953,703     $ 4,282,733  

The Trust files a United States Federal income tax return. With few exceptions, the Trust is no longer subject to U. S. Federal income tax examination by tax authorities for years before 2008.