Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

6. Income Taxes

Presidential has elected to qualify as a Real Estate Investment Trust under the Internal Revenue Code. A REIT which distributes at least 90% of its real estate investment trust taxable income to its shareholders each year by the end of the following year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its shareholders.

ASC 740 prescribes a more likely than not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken. If the Company’s tax position in relation to a transaction was not likely to be upheld, the Company would be required to record the accrual for the tax and interest thereon. As of September 30, 2013, the tax years that remain open to examination by the federal, state and local taxing authorities are the 2010 – 2012 tax years. The Company was not required to accrue any liability for those tax years. 

For the nine months ended September 30, 2013, the Company had taxable income from the foreclosure of the Hato Rey property of approximately $3,800,000 or $1 .03 per share, and a capital gain of approximately $280,000 or $0.08 per share. On a consolidated basis the Company had taxable income of $3,000,000or $0.82per share and a capital gain of approximately $280,000 or $0.08 per share. Due to the net operating carryforward losses no provision for income taxes was required. The Company has approximately $18,500,000of remaining tax loss carry forwards available for future use.