INCOME TAXES

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 14 – INCOME TAXES

The provision for the Company’s income tax benefit (expense) is comprised of the following:

For the years ended June 30,	2012								2011
	Continuing			Discontinued					Continuing		Discontinued
	Operations			Operations		Total			Operations		Operations		Total
Federal
Current tax expense		284,000			-		284,000			50,000		-		50,000
Deferred tax expense (benefit)		(1,847,000	)		799,000		(1,048,000	)		2,815,000		1,222,000		4,037,000
		(1,563,000	)		799,000		(764,000	)		2,865,000		1,222,000		4,087,000
State
Current tax expense		97,000			12,000		109,000			119,000		44,000		163,000
Deferred tax expense (benefit)		(15,000	)		57,000		42,000			624,000		191,000		815,000
		82,000			69,000		151,000			743,000		235,000		978,000
		(1,481,000	)		868,000		(613,000	)		3,608,000		1,457,000		5,065,000

The provision for income taxes from continuing operations differs from the amount of income tax computed by applying the federal statutory income tax rate to income (loss) before taxes as a result of the following differences:

For the years ended June 30,	2012			2011
Statutory federal tax rate	$	(1,236,000	)	$	4,049,000
State income taxes, net of federal tax benefit		(44,000	)		527,000
Dividend received deduction		(292,000	)		(349,000	)
Noncontrolling interest		(635,000	)		(64,000	)
Valuation allowance		547,000			(733,000	)
Other		179,000			178,000
	$	(1,481,000	)	$	3,608,000

The components of the deferred tax asset and liabilities are as follows:

	June 30, 2012			June 30, 2011
Deferred tax assets:
Net operating loss carryforwards	$	8,980,000		$	9,343,000
Capital loss carryforwards		192,000			615,000
Investment impairment reserve		2,049,000			1,803,000
Accruals and reserves		668,000			500,000
Valuation allowance		(1,298,000	)		(752,000	)
		10,591,000			11,509,000
Deferred tax liabilities:
Deferred gains on real estate sale		(9,648,000	)		(8,819,000	)
Unrealized gains on marketable securities		(4,254,000	)		(6,426,000	)
Depreciation and amortization		(315,000	)		246,000
Equity earnings		(1,266,000	)		(44,000	)
State taxes		(89,000	)		(2,453,000	)
		(15,572,000	)		(17,496,000	)
Net deferred tax liability	$	(4,981,000	)	$	(5,987,000	)

As of June 30, 2012, the Company had net operating losses (NOLs) of $22,686,000 and $15,090,000 for federal and state purposes, respectively. Below is the break-down of the NOLs for Intergroup, Santa Fe and Portsmouth. The carryforward expires in varying amounts through the year 2022.

	Federal		State
InterGroup	$	5,606,000	$	2,226,000
Santa Fe		6,269,000		2,860,000
Portsmouth		10,811,000		10,004,000
	$	22,686,000	$	15,090,000

The Company is subject to U.S. federal income tax as well as to income tax in multiple state jurisdictions. Federal income tax returns of the Company are subject to IRS examination for the 2008 through 2011 tax years. State income tax returns are subject to examination for the 2007 through 2011 tax years.

Utilization of the net operating loss carryover may be subject a substantial annual limitation if it should be determined that there has been a change in the ownership of more than 50 percent of the value of the Company's stock, pursuant to Section 382 of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating loss carryovers before utilization.

For the year ended June 30, 2012, there is no unrecognized tax provision or benefit. Management does not anticipate any future adjustments in the next twelve months which would result in a material change to its tax position. As of June 30, 2012 and 2011, the Company did not have any interest and penalties.