INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2021

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

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


	Year ended September 30,
	2021		2020
United States	$	5,436,000	$	1,518,000
Canada	1,149,000		(6,271,000)
	$	6,585,000	$	(4,753,000)

Schedule of components of the income tax provision (benefit)

The components of the income tax provision related to the above earnings (loss) are as follows:


	Year ended September 30,
	2021		2020
Current provision (benefit):
United States – Federal
Before operating loss carryforwards	$	60,000	$	—
Benefit of operating loss carryforwards	(60,000)		—
After operating loss carryforwards	—		—
United States – State
Before operating loss carryforwards	174,000		(23,000)
Benefit of operating loss carryforwards	(7,000)		—
After operating loss carryforwards	167,000		(23,000)
Canadian	—		—
Total current	167,000		(23,000)
Deferred provision:

United States – State	165,000		26,000
Canadian	—		—
Total deferred	165,000		26,000
	$	332,000	$	3,000

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 expense and the amount computed by multiplying the earnings (loss) attributable to Barnwell before income taxes by the U.S. federal tax rate of 21% is as follows:


	Year ended September 30,
	2021		2020
Tax provision (benefit) computed by applying statutory rate	$	1,383,000	$	(998,000)
Impact of TCJA limitation on post-TCJA net operating loss carryforwards	—		(260,000)
(Decrease) increase in the valuation allowance	(1,482,000)		1,978,000

Additional effect of the foreign tax provision on the total tax provision	87,000		(762,000)

U.S. state tax provision, net of federal benefit	332,000		3,000
Other	12,000		42,000
	$	332,000	$	3,000

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,
	2021		2020
Deferred income tax assets:
Foreign tax credit carryover under U.S. tax law	$	1,197,000	$	2,421,000

U.S. federal net operating loss carryover	8,846,000		8,874,000
U.S. state unitary net operating loss carryovers	939,000		877,000
Canadian net operating loss carryovers	1,411,000		1,351,000
Tax basis of investment in land in excess of book basis under U.S. tax law	305,000		306,000
Property and equipment accumulated book depreciation and depletion in excess of tax under Canadian tax law	1,091,000		1,421,000
Property and equipment accumulated book depreciation and depletion in excess of tax under U.S. tax law	699,000		931,000
Liabilities accrued for books but not for tax under U.S. tax law	1,225,000		1,894,000
Liabilities accrued for books but not for tax under Canadian tax law	1,813,000		1,591,000
Other	170,000		345,000
Total gross deferred income tax assets	17,696,000		20,011,000
Less valuation allowance	(16,398,000)		(19,357,000)
Net deferred income tax assets	1,298,000		654,000
Deferred income tax liabilities:

Book basis of investment in land development partnerships in excess of tax basis under U.S. tax law	(1,156,000)		(654,000)
Book basis of investment in land development partnerships in excess of tax basis under U.S. state non-unitary tax law	(352,000)		(194,000)

U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. tax law	(142,000)		—
U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. state tax law	(7,000)		—
Total deferred income tax liabilities	(1,657,000)		(848,000)
Net deferred income tax liability	$	(359,000)	$	(194,000)
Reported as:
Deferred income tax assets	—		—
Deferred income tax liabilities	(359,000)		(194,000)
Net deferred income tax liability	$	(359,000)	$	(194,000)

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, 2021:


Jurisdiction			Fiscal Years Open
U.S. federal			2018 – 2020
Various U.S. states			2018 – 2020
Canada federal			2014 – 2020
Various Canadian provinces			2014 – 2020