INCOME TAXES

12 Months Ended

Apr. 30, 2022

INCOME TAXES

INCOME TAXES

(13)        INCOME TAXES

The provision (benefit) for income taxes consists of the following (in thousands):

	Year Ended April 30,
	2022		2021
Current:
Federal	$	2,876	$	69
State and local		1,062		80
		3,938		149
Deferred:
Federal		1,333		2,219
State and local		433		275
		1,766		2,494
Total provision (benefit) for income taxes	$	5,704	$	2,643

The components of the net deferred income taxes are as follows (in thousands):

	April 30,
	2022		2021
Deferred income tax assets:
State tax loss carryforwards	$	4,199	$	4,296
U.S. federal NOL carryforward		—		1,384
Accrued pension costs		9		—
Vacation accrual		14		14
Real estate basis differences		3,441		3,976
Other		230		303
Total deferred income tax assets		7,893		9,973

Deferred income tax liabilities:
Depreciable assets		—		(749)
Deferred gains on investment assets		(2,387)		(2,300)
Prepaid pension costs		(363)		(178)
Other		(36)		(31)
Total deferred income tax liabilities		(2,786)		(3,258)
Valuation allowance for realization of certain deferred income tax assets		(4,149)		(3,966)
Net deferred income tax asset	$	958	$	2,749

A valuation allowance is provided when it is considered more likely than not that certain deferred tax assets will not be realized. The valuation allowance relates primarily to deferred tax assets, including net operating loss carryforwards, in states where the Company either has no current operations or its operations are not considered likely to realize the deferred tax assets due to the amount of the applicable state net operating loss or its expected expiration date. The $183,000 increase in the valuation allowance in 2022 is related to the increase in state net operating losses that are not expected to be realizable.

The Company has no federal net operating loss carryforwards. The Company has state net operating loss carryforwards of $93,603,000 that expire beginning in fiscal year ending April 30, 2025.

The following table reconciles taxes computed at the U.S. federal statutory income tax rate from continuing operations to the Company’s actual tax provision (in thousands):

	Year Ended April 30,
	2022		2021
Computed tax provision at statutory rate	$	4,526	$	2,108
Increase (reduction) in tax resulting from:
Deferred tax rate changes		(453)		139
Change in valuation allowances		183		(304)
State income taxes, net of federal income tax effect		1,095		366
Permanent items		—		(63)
Other		353		397
Actual tax provision	$	5,704	$	2,643

The Company is subject to U.S. federal income taxes and various state and local income taxes. Tax regulations within each jurisdiction are subject to interpretation and require significant judgment to apply. Other than U.S. federal tax returns, in nearly all jurisdictions, the tax years through the fiscal year ended April 30, 2018 are no longer subject to examination due to the expiration of the applicable statutes of limitations.

ASC 740 clarifies the accounting for uncertain tax positions, prescribing a minimum recognition threshold a tax position is required to meet before being recognized, and providing guidance on the derecognition, measurement, classification and disclosure relating to income taxes. The Company has no unrecognized tax benefits for 2022 and 2021.

The Company has elected to include interest and penalties in its income tax expense. The Company had no accrued interest or penalties as of April 30, 2022 and 2021.