Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Income tax expense

The items comprising the income tax provision are as follows:

	For the Years Ended December 31,
	2013			2012
Current tax provision:
Federal	$	-		$	1,000
State		800			800
Foreign		7,100			371,100
Current tax provision		7,900			372,900
Deferred tax provision:
Federal		1,838,000			2,310,100
State		1,100			14,700
Decrease in valuation allowance		(158,600	)		-
Deferred tax provision		1,680,500			2,324,800
Total income tax provision	$	1,688,400		$	2,697,700

Income tax reconciliation

Total income tax expense differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below:

	For the Years Ended December 31,
	2013			2012
Income tax provision at statutory federal income tax rate	$	1,668,100		$	2,681,500
State tax provision, net of federal benefit		19,400			33,200
Prior year withholding tax adjustment		174,600			-
Decrease in valuation allowance		(158,600	)		-
Other		(15,100	)		(17,000	)
Total income tax provision	$	1,688,400		$	2,697,700

Deferred tax assets and liabilities

Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2013 and 2012 were as follows:

	December 31,
	2013			2012
Deferred tax assets:
Net operating loss carryovers	$	-		$	932,000
Foreign tax credit carryover		1,198,100			1,830,000
Unearned revenue		103,800			-
Alternative minimum tax credit		100,800			100,800
Bad debt allowance and other		490,100			936,500
Deferred tax assets		1,892,800			3,799,300
Deferred tax liabilities:
Accumulated depreciation on aircraft and aircraft engines		(17,343,000	)		(17,471,100	)
Minimum lease payments receivable		(649,500	)		(533,200	)
Deferred income		-			(55,600	)
Net deferred tax liabilities before valuation allowance		(16,099,700	)		(14,260,600	)
Valuation allowance		-			(158,600	)
Net deferred tax liabilities	$	(16,099,700	)	$	(14,419,200	)