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Taxes
12 Months Ended
Dec. 31, 2021
Taxes [Abstract]  
Taxes
Note H – Taxes

The components of the provision for income taxes are as follows:

   
Years Ended December 31,
 
   
2021
   
2020
 
             
Current taxes:
           
Federal
 
$
56,000
   
$
211,000
 
State
   
64,000
     
95,000
 
Current taxes
   
120,000
     
306,000
 
Deferred taxes:
               
Federal
 
$
-
   
$
12,000
State
   
-
     
5,000
Deferred taxes
   
-
     
17,000
Income tax provision
 
$
120,000
   
$
323,000
 

A reconciliation of the tax provision calculated at the statutory federal income tax rate with amounts reported follows:

   
Year Ended December 31,
 
   
2020
   
2020
 
             
Income tax at the federal statutory rate
 
$
(130,000
)
 
$
180,000
 
State income tax, net of federal taxes
   
(103,000
)
   
52,000
 
Permanent differences and other
   
(72,000
)
   
16,000
 
Change in estimated effective state tax rate
   
2,000
     
(4,000
)
Change in valuation allowance
   
423,000
     
79,000
 
                 
Income tax provision
 
$
120,000
   
$
323,000
 

Items which give rise to deferred tax assets and liabilities are as follows:

   
December 31,
 
   
2021
   
2020
 
Deferred tax asset:
           
Basis differences in unconsolidated entities, including advances and loans to those entities
 
$
587,000
   
$
561,000
 
Excess of book depreciation over tax depreciation
   
306,000
     
192,000
 
Net intangible assets and other capitalized costs
    102,000       -  
Net operating loss
   
66,000
     
34,000
 
Net effect of conversion from the accrual basis of accounting to the cash basis of accounting for tax purposes primarily related to accounts receivable, prepaid expense, deferred revenue, and accounts payable
   
44,000
     
-
 
Valuation allowance
   
(502,000
)
   
(79,000
)
     
603,000
     
708,000
 
                 
Deferred tax liability:
               
Deferred gain on disposal of gamma knife
   
(603,000
)
   
(634,000
)
Net effect of conversion from the accrual basis of accounting to the cash basis of accounting for tax purposes primarily related to accounts receivable, prepaid expense, deferred revenue, and accounts payable
   
-
     
(74,000
)
Net deferred tax asset
 
$
-
   
$
-
 

The Company files income tax returns in the U.S. federal jurisdiction, the State of Maryland, the State of Florida , the State of California, and the State of New York.  With few possible exceptions, the Company is no longer subject to U.S. or state income tax examinations by tax authorities for years before 2018.