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, 2012
Income Tax Disclosure [Text Block]
(6)      Income Taxes

The income tax provision charged to operations for the years ended December 31, 2012, 2011, and 2010 was as follows:

   
2012
   
2011
   
2010
 
Current:
                 
U.S. federal
  $ 10,046,442     $ 11,053,133     $ 5,396,269  
State and local
    241,402       265,498       149,234  
      10,287,844       11,318,631       5,545,503  
Deferred expense
    (612,776 )     (1,157,482 )     (430,033 )
    $ 9,675,068     $ 10,161,149     $ 5,115,470  

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 35% (34% for 2010) to income before Federal income taxes as a result of the following:

   
2012
   
2011
   
2010
 
Computed tax expense at the statutory rate
  $ 10,263,010     $ 10,764,571     $ 5,584,222  
Reduction in income taxes resulting from:
                       
Statutory depletion
    (799,957 )     (802,104 )     (614,358 )
State taxes
    227,718       238,860       140,559  
Other, net
    (15,703 )     (40,178 )     5,047  
    $ 9,675,068     $ 10,161,149     $ 5,115,470  

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows:

   
2012
   
2011
 
Basis difference in pension plan liability
  $ 311,868     $ 183,590  
Total deferred tax assets
    311,868       183,590  
                 
Basis differences in real estate acquired through foreclosure
    237,697       226,378  
Deferred installment revenue on land sales for tax purposes
    2,348,667       2,910,915  
Total deferred tax liability
    2,586,364       3,137,293  
Net deferred tax liability
  $ 2,274,496     $ 2,953,703  

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 2009.