INCOME TAXES

12 Months Ended

Oct. 02, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 14. INCOME TAXES

The components of our provision for income taxes for our fiscal years 2021 and 2020 are as follows:

	2021		2020
Current:
Federal	$	251,000	$	(70,000	)
State		176,000		113,000
Deferred:		427,000		43,000
Federal		649,000		(88,000	)
State		109,000		(15,000	)
		758,000		(103,000	)
	$	1,185,000	$	(60,000	)

A reconciliation of income tax computed at the statutory federal rate to income tax expense is as follows:

	2021			2020
Tax provision at the statutory rate	$	3,770,000		$	446,000
Non-controlling interests		(1,046,000	)		(226,000	)
State income taxes, net of federal income tax		196,000			43,000
FICA tip credit		(297,000	)		(418,000	)
True up adjustment		115,000			43,000
Tax effect of rate change due to Tax Reform		(1,000	)		13,000
PPP forgiveness		(1,576,000	)		—
Other permanent items		24,000			39,000
	$	1,185,000		$	(60,000	)

We have deferred tax assets which arise primarily due to depreciation recorded at different rates for tax and book purposes offset by cost basis differences in depreciable assets due to the deferral of the recognition of insurance recoveries on casualty losses for tax purposes, investments in and management fees paid by limited partnerships, accruals for potential uninsured claims, bonuses accrued for book purposes but not paid within two and a half months for tax purposes, the capitalization of certain inventory costs for tax purposes not recognized for financial reporting purposes, the recognition of revenue from gift cards not redeemed within twelve months of issuance, allowances for uncollectable receivables, unfunded limited retirement commitments and FICA tax credit.

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NOTE 14. INCOME TAXES (Continued)

The components of our deferred tax assets at October 2, 2021 and October 3, 2020 were as follows:

	2021			2020
Long-Term:
Reversal of aged payables	$	18,000		$	18,000
Capitalized inventory costs		26,000			22,000
Accrued bonuses		96,000			166,000
Accruals for potential uninsured claims		34,000			27,000
Gift cards		195,000			162,000
Limited partnership management fees		(720,000	)		(192,000	)
Tip credit		85,000			7,000
Book/tax differences in property and equipment		(886,000	)		(507,000	)
Book/tax differences in operating leases		428,000			279,000
Limited partnership investments		264,000			307,000
Accrued limited retirement		54,000			63,000
Total Deferred Tax Assets (Liabilities)	$	(406,000	)	$	352,000