Annual report pursuant to Section 13 and 15(d)

Note 6 - Income Taxes

v2.4.1.9
Note 6 - Income Taxes
 12 Months Ended
Dec. 31, 2014
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
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6
)
Income
Taxes
 
The income tax provision charged to operations for the years ended December 31, 2014, 2013 and 2012 was as follows:
 
 
 
 
2014
 
 
2013
 
 
2012
 
Current:
                        
U.S. Federal
   $ 17,243,130     $ 13,381,265     $ 10,046,442  
State and local
     398,401       327,730       241,402  
      17,641,531       13,708,995       10,287,844  
Deferred expense
     (974,997 )     (784,925 )     (612,776 )
    $ 16,666,534     $ 12,924,070     $ 9,675,068  
 
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% to income before Federal income taxes as a result of the following:
 
 
 
2014
 
 
2013
 
 
2012
 
Computed tax expense at the statutory rate
   $ 18,001,044     $ 14,049,902     $ 10,263,010  
Reduction in income taxes resulting from:
                        
Statutory depletion
     (1,569,762 )     (1,317,177 )     (799,957 )
State taxes
     379,283       312,340       227,718  
Other, net
     (144,031 )     (120,995 )     (15,703 )
    $ 16,666,534     $ 12,924,070     $ 9,675,068  
 
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2014 and 2013 are as follows:
 
 
 
2014
 
 
2013
 
Basis difference in pension plan liability
   $ 269,271     $ (69,659 )
Total deferred tax asset (liability)
     269,271       (69,659 )
                 
Basis differences in real estate acquired through foreclosure
     237,697       237,697  
Deferred installment revenue on land sales for tax purposes
     324,714       1,366,519  
Total deferred tax liability
     562,411       1,604,216  
Net deferred tax liability
   $ 293,140     $ 1,673,875  
 
The Trust files a U. S. 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 2011.