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Annual report pursuant to Section 13 and 15(d)

Note 6 - Income Taxes

v2.4.0.6
Note 6 - Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Tax Disclosure [Text Block]
(6)ÌýÌýÌýÌýÌýÌý Income Taxes

The Trust is taxed as if it were a corporation. Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to income before Federal income taxes as a result of the following:

Ìý Ìý
2011
Ìý Ìý
2010
Ìý Ìý
2009
Ìý
Computed tax expense at the statutory rate
Ìý $ 10,457,012 Ìý Ìý $ 5,584,222 Ìý Ìý $ 3,415,219 Ìý
Reduction in income taxes resulting from:
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Statutory depletion
Ìý Ìý (802,104 ) Ìý Ìý (614,358 ) Ìý Ìý (467,834 )
State taxes
Ìý Ìý 238,860 Ìý Ìý Ìý 140,559 Ìý Ìý Ìý 197,767 Ìý
Other, net
Ìý Ìý 267,381 Ìý Ìý Ìý 5,047 Ìý Ìý Ìý (14,432 )
Ìý Ìý $ 10,161,149 Ìý Ìý $ 5,115,470 Ìý Ìý $ 3,130,720 Ìý


The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2011 and 2010 are as follows:

Ìý Ìý
2011
Ìý Ìý
2010
Ìý
Basis difference in pension plan liability
Ìý $ 183,590 Ìý Ìý $ 148,357 Ìý
Total deferred tax assets
Ìý Ìý 183,590 Ìý Ìý Ìý 148,357 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Basis differences in real estate acquired through foreclosure
Ìý Ìý 226,378 Ìý Ìý Ìý 226,378 Ìý
Deferred installment revenue on land sales for tax purposes
Ìý Ìý 2,910,915 Ìý Ìý Ìý 4,204,712 Ìý
Total deferred tax liability
Ìý Ìý 3,137,293 Ìý Ìý Ìý 4,431,090 Ìý
Net deferred tax liability
Ìý $ 2,953,703 Ìý Ìý $ 4,282,733 Ìý

The Trust files a United States Federal income tax return. With few exceptions, the Trust is no longer subject to U. S. Federal income tax examination by tax authorities for years before 2008.