General form of registration statement for all companies including face-amount certificate companies

Income taxes

v2.4.0.8
Income taxes
 9 Months Ended
Sep. 30, 2013
Income taxes [Abstract]  
Income taxes

Note 10 - Income taxes:

 

The provision for income taxes consists of the following:

 

    For the Nine Months Ended
September 30,		     For the Years Ended December 31,  
    2013     2012     2012     2011     2010  
    (unaudited)     (unaudited)                    
Current   $ 112,662     $ 180,229     $ 301,932     $ 193,751     $ 199,140  
Deferred     42,876       (161,192 )     (176,755 )     (43,556 )     (78,280 )
Effect of change in valuation allowances     -       -       (111,375 )     46,038       -  
Totals   $ 155,538     $ 19,037     $ 13,802     $ 196,233     $ 120,860  

 

The reconciliation between the Company's effective tax rate on income from continuing operations and the statutory rate is as follows:

 

    For the Nine Months Ended
September 30,		     For the Years Ended December 31,  
    2013     2012     2012     2011     2010  
    (unaudited)     (unaudited)                    
Income tax expense at federal statutory rate   $ -     $ -     $ -     $ -     $ -  
State and local income taxes     155,538       19,037       125,177       150,195       120,860  
Change in valuation allowance     -       -       (111,375 )     46,038       -  
Income tax expense   $ 155,538     $ 19,037     $ 13,802     $ 196,233     $ 120,860  

 

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:

 

    At September 30,     At December 31,  
    2013     2012     2011  
Long-term deferred tax assets (liabilities):     (unaudited)                  
State and local net operating loss carryforwards   $ 59,874     $ 76,918     $ 90,157  
Deferred rent     168,079       169,183       115,031  
Lease incentives     34,914       36,868       38,842  
Depreciation and amortization     44,089       66,413       (56,857 )
Total long-term deferred tax assets     306,956       349,382       187,173  
                         
Valuation allowance     -       -       (111,375 )
Total net deferred tax assets   $ 306,956     $ 349,382     $ 75,798  

 

Net operating loss carryfowards of approximately $1,923,000 expire through 2023.

 

In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. At December 31, 2011, a valuation allowance equal to 100% of the deferred tax assets has been provided for JEC II due to the uncertainty related to the extent and timing of JEC II's future taxable income. In 2012, JEC II began generating income through its interest in Bagatelle NY, which was profitable in 2012 and is expected to generate future taxable income. As such, the valuation allowance was reversed in 2012.