Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The items comprising the Company’s income tax provision are as follows:

	For the Years Ended December 31,
	2018			2017
Current tax provision:
Federal	$	-		$	-
State		3,200			800
Foreign		414,000			329,500
Current tax provision		417,200			330,300
Deferred tax (benefit)/provision:
Federal		(1,270,400	)		1,159,700
State		(26,100	)		35,100
Foreign		(93,500	)		(111,300	)
Net legislative change in corporate tax rate		-			(5,380,300	)
Deferred tax benefit		(1,390,000	)		(4,296,800	)
Total income tax benefit	$	(927,800	)	$	(3,966,500	)

Income Tax Reconciliation

Total income tax (benefit)/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,
	2018			2017

Income tax provision at statutory federal income tax rate	$	(1,901,400	)	$	1,167,100
State tax (benefit)/provision, net of federal benefit		(44,500	)		33,100
Non-deductible Merger expenses		647,200			213,500
Non-deductible mangement and acquisition fees		325,900			-
Net legislative change in corporate tax rate		-			(5,380,200	)
Total income tax benefit	$	(927,800	)	$	(3,966,500	)

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, 2018 and 2017 were as follows:

	December 31,
	2018			2017
Deferred tax assets:
Current and prior year tax losses	$	4,065,100		$	3,362,100
Maintenance reserves		3,100,800		$	2,810,200
Foreign tax credit		611,900			295,800
Deferred interest expense		81,800			-
Deferred maintenance, bad debt allowance and other		92,500			38,800
Alternative minimum tax credit		45,500			45,500
Deferred tax assets		7,997,600			6,552,400
Deferred tax liabilities:
Accumulated depreciation on aircraft and aircraft engines		(14,773,800	)		(14,591,000	)
Deferred income		(320,600	)		(495,100	)
Leasehold interest		(185,400	)		-
Net deferred tax liabilities	$	(7,282,200	)	$	(8,533,700	)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	December 31,
	2018		2017
Balance at January 1	$	-		-
Additions for prior years’ tax positions		85,400		-
Balance at December 31	$	85,400		-