TAXES

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

TAXES

NOTE 12 - TAXES

Income Tax

We have elected to be taxed as a REIT under the applicable provisions of the Code under Sections 856 to 860 and the comparable New Jersey Statutes. Under such provisions, we will not be taxed on that portion of our taxable income distributed currently to shareholders, provided that at least 90% of our taxable income is distributed. As we have and intend to continue to distribute all of our income, currently no provision has been made for income taxes. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes at regular corporate rates and may not be able to qualify as a REIT for four subsequent taxable years. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and to federal income and excise taxes on our undistributed taxable income. In addition, taxable income from non-REIT activities managed through taxable REIT subsidiaries is subject to federal, state, and local income taxes.

Federal Excise Tax

We do not have a Federal excise tax liability for the calendar years 2019, 2018 and 2017, since we intend to or have distributed all of our annual Federal taxable net income.

Reconciliation Between U.S. GAAP Net Income and Taxable Income

The following table reconciles Net Income Attributable to common shares to taxable income for the years ended September 30, 2019, 2018 and 2017 (in thousands):

	2019 Estimated (unaudited)		2018 Actual			2017 Actual
Net income attributable to common shareholders	$	11,026	$	38,815		$	22,942
Book / tax difference on gains realized from capital transactions		0		(7,596	)		(2,312	)
Stock compensation expense		784		434			625
Deferred compensation		0		0			0
Other book / tax differences, net		1,650		(1,039	)		(1,596	)
Taxable income before adjustments		13,460		30,614			19,659
Add: capital gains		19,680		7,996			567
Estimated taxable income subject to 90% dividend requirement	$	33,140	$	38,610		$	20,226

Reconciliation Between Cash Dividends Paid and Dividends Paid Deduction

The following table reconciles cash dividends paid with the dividends paid deduction for the years ended September 30, 2019, 2018 and 2017 (in thousands):

	2019 Estimated (unaudited)			2018 Actual			2017 Actual
Cash dividends paid	$	63,742		$	53,586		$	46,289
Less: Portion designated capital gains distribution		(19,680	)		(7,996	)		(567	)
Less: Return of capital		(30,602	)		(14,976	)		(7,361	)
Estimated dividends paid deduction	$	13,460		$	30,614		$	38,361