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.
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