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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)ÌýÌýÌýÌýÌý Income Taxes

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

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

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:

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

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:

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

The Trust files a United States Federal income tax return.ÌýÌýWith few exceptions, the Trust is no longer subject to U. S. Federal income tax examination by tax authorities for years before 2009.