Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

The items comprising the income tax provision are as follows:

	For the Years Ended December 31,
	2014			2013
				(As adjusted)
Current tax provision:
Federal	$	-		$	-
State		800			800
Foreign		-			7,100
Current tax provision		800			7,900
Deferred tax (benefit)/provision:
Federal		(5,854,400	)		4,478,800
State		(98,200	)		1,100
Decrease in valuation allowance		-			(158,600	)
Deferred tax (benefit)/provision		(5,952,600	)		4,321,300
Total income tax (benefit)/provision	$	(5,951,800	)	$	4,329,200

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,
	2014			2013
				(As adjusted)

Income tax (benefit)/provision at statutory federal income tax rate	$	(5,863,600	)	$	4,308,900
State tax (benefit)/provision, net of federal benefit		(97,500	)		19,400
Prior year withholding tax adjustment		-			174,600
Decrease in valuation allowance		-			(158,600	)
Other		9,300			(15,100	)
Total income tax (benefit)/provision	$	(5,951,800	)	$	4,329,200

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, 2014 and 2013 were as follows:

	December 31,
	2014			2013
				(As adjusted)
Deferred tax assets:
Maintenance reserves	$	2,138,900		$	1,813,900
Foreign tax credit carryover		-			1,210,900
Alternative minimum tax credit		10,800			100,800
Bad debt allowance and other		961,100			490,100
Deferred tax assets		3,110,800			3,615,700
Deferred tax liabilities:
Accumulated depreciation on aircraft and aircraft engines		(10,450,000	)		(17,540,000	)
Minimum lease payments receivable		-			(649,500	)
Deferred income		(1,282,100	)		-
Net deferred tax liabilities	$	(8,621,300	)	$	(14,573,800	)