Income Taxes
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Dec. 31, 2012
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Income Taxes | (9) Income Taxes Income tax (benefit) consisted of the following for the year ended December 31, as follows:
The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows:
Deferred tax assets and liabilities that result from the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at December 31, are as follows:
Tax credit carryforwards as of December 31, 2012 consist of the following:
The Company does not have the ability to carryback its net operating loss and low income housing credits to recover federal income taxes paid in prior years. Under current California law, the Company cannot recover state income taxes paid in prior years. At year-end 2012, the Company has a California net operating loss carryforward of approximately $32,379,000 that will begin to expire in 2031, if not utilized to reduce future taxable income. Under generally accepted accounting principles, a valuation allowance is required if it is "more likely than not" that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management's evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. At December 31, 2012, and December 31, 2011, the Company had net deferred tax assets of $19,264,000 and $21,870,000, respectively. At December 31, 2012, the Company determined that a valuation allowance for deferred tax assets was not necessary. The Company and its subsidiaries are subject to U.S. Federal income tax as well as income tax of the State of California. The Company is no longer subject to examination by federal and state taxing authorities for years before 2009 and 2008, respectively. |