INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2019

Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests

The components of loss before income taxes, after adjusting the loss for non-controlling interests, are as follows:



	Year ended September 30,
	2019			2018
United States	$	(3,039,000	)	$	(2,449,000	)
Canada	(9,606,000		)	78,000
	$	(12,645,000	)	$	(2,371,000	)

Schedule of components of the income tax provision (benefit)

The components of the income tax benefit related to the above loss are as follows:



	Year ended September 30,
	2019			2018
Current (benefit) provision:
United States – Federal	$	(31,000	)	$	(429,000	)
United States – State	(52,000		)	7,000
Canadian	(4,000		)	(560,000		)
Total current	(87,000		)	(982,000		)
Deferred (benefit) provision:
United States – State	(24,000		)	(44,000		)
Canadian	(120,000		)	425,000
Total deferred	(144,000		)	381,000
	$	(231,000	)	$	(601,000	)

Summary of reconciliation between the reported income tax provision (benefit) and the amount computed by multiplying the loss by the U.S. federal tax rate

A reconciliation between the reported income tax benefit and the amount computed by multiplying the loss attributable to Barnwell before income taxes by the U.S. federal tax rate of 21% is as follows:



	Year ended September 30,
	2019			2018
Tax benefit computed by applying statutory rate	$	(2,655,000	)	$	(498,000	)
Impact of TCJA limitation on post-TCJA net operating loss carryforwards	260,000			—
Impact of TCJA tax rate change on net deferred tax assets	—			5,817,000
Increase (decrease) in the valuation allowance	3,003,000			(6,044,000		)
Impact of TCJA on alternative minimum tax credit carryovers	(31,000		)	(429,000		)
Additional effect of the foreign tax provision on the total tax provision	(736,000		)	592,000
U.S. state tax provision, net of federal benefit	(76,000		)	(36,000		)
Other	4,000			(3,000		)
	$	(231,000	)	$	(601,000	)

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:



	September 30,
	2019			2018
Deferred income tax assets:
Foreign tax credit carryover under U.S. tax law	$	2,421,000		$	2,455,000
U.S. federal net operating loss carryover	8,366,000			7,208,000
U.S. state unitary net operating loss carryovers	873,000			639,000
Canadian net operating loss carryover	850,000			314,000
Tax basis of investment in land in excess of book basis under U.S. tax law	296,000			296,000
Property and equipment accumulated book depreciation and depletion in excess of tax under Canadian tax law	308,000			—
Property and equipment accumulated book depreciation and depletion in excess of tax under U.S. tax law	945,000			1,183,000
Liabilities accrued for books but not for tax under U.S. tax law	2,250,000			1,901,000
Liabilities accrued for books but not for tax under Canadian tax law	1,641,000			2,097,000
Other	294,000			277,000
Total gross deferred income tax assets	18,244,000			16,370,000
Less valuation allowance	(17,687,000		)	(14,039,000		)
Net deferred income tax assets	557,000			2,331,000
Deferred income tax liabilities:
Property and equipment accumulated tax depreciation and depletion in excess of book under Canadian tax law	—			(1,828,000		)
Book basis of investment in land development partnerships in excess of tax basis under U.S. tax law	(557,000		)	(627,000		)
Book basis of investment in land development partnerships in excess of tax basis under U.S. state non-unitary tax law	(168,000		)	(191,000		)
Total deferred income tax liabilities	(725,000		)	(2,646,000		)
Net deferred income tax liability	$	(168,000	)	$	(315,000	)
Reported as:
Deferred income tax assets	—			—
Deferred income tax liabilities	(168,000		)	(315,000		)
Net deferred income tax liability	$	(168,000	)	$	(315,000	)

Summary of tax years, by jurisdiction, that remain subject to examination by taxing authorities

Included below is a summary of the tax years, by jurisdiction, that remain subject to examination by taxing authorities at September 30, 2019:



Jurisdiction	Fiscal Years Open
U.S. federal	2016 – 2018
Various U.S. states	2016 – 2018
Canada federal	2012 – 2018
Various Canadian provinces	2012 – 2018