XML 31 R17.htm IDEA: XBRL DOCUMENT v3.23.1
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

 

8.Income Taxes.

 

The Provision for income tax expense included in the financial statements (in thousands):

 

                         
    Years Ended December 31,
    2022   2021   2020
Included in Net income:                        
  Continuing operations   $ 1,530       10,281       3,207  
Comprehensive income     (515 )     (209 )     (92 )
                         
Total tax expense   $ 1,015       10,072       3,115  

 

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

 

                         
    Year Ended December 31,
    2022   2021   2020
Current:            
Federal   $ (214 )     305       (2,667 )
State     (571 )     1,826       (213 )
Current income tax expense      (785 )     2,131       (2,880 )
Deferred     1,800       7,941       5,995  
                         
Total   $ 1,015       10,072       3,115  

 

The deferred taxes are primarily related to the bonus depreciation on property placed in service. Taxes in 2020 were favorably impacted by $1,100,000 due to a carryback of our 2020 tax net operating loss to fiscal 2016 when the federal

tax rate was 35%.

 

As of December 31, 2022 the company has deferred taxes of approximately $31 million associated with $112 million of gains on sales reinvested through Opportunity Zone investments. These taxes are deferred until the earlier of the sale of the related investments or December 31, 2026 and 10% of gains are excluded from tax once the investments are held five years plus an additional 5% is excluded at seven years.

 

A reconciliation between the amount of tax shown above and the amount computed at the statutory Federal income tax rate follows (in thousands):

                         
    Year Ended December 31
    2022   2021   2020
Amount computed at statutory                        
  Federal rate   $ 924       7,941       3,226  

State income taxes (net of Federal

  income tax benefit)

     (30 )      2,634       1,048  
Carryback of net operating loss     —         —         (1,100 ) 
Other, net     121       (503 )      (59 ) 
Provision for income taxes   $ 1,015       10,072       3,115  

 

In this reconciliation, the category “Other, net” consists of permanent tax differences related to non-deductible expenses, special tax rates and tax credits, interest paid and penalties, and adjustments to prior year estimates.

 

The types of temporary differences and their related tax effects that give rise to deferred tax assets and deferred tax liabilities are presented below (in thousands):

 

                         
    December 31,
    2022   2021   2020
Deferred tax liabilities:                        
 Property and equipment   $ 41,866       38,143       25,468  
 Investment in opportunity zone     34,871       30,846       30,846  
 Depletion     697       704       708  
 Unrealized rents     150       58       27  
 Prepaid expenses     31       36       50  
  Gross deferred tax liabilities     77,615       69,787       57,099  
Deferred tax assets:                        
 Federal tax loss carryforwards     6,375       3,235       —    
 State tax loss carryforwards     2,359       1,388       —    
 Employee benefits and other     921       1,117       993  
Gross deferred tax assets     9,655       5,740       993  
Net deferred tax liability   $ 67,960       64,047       56,106  

 

 

                 
    Years Ended
Other Items - All Gross     12/31/2022       12/31/2021  
State NOL Carryovers     38,169,229       23,111,156  
Federal NOL Carryovers     30,357,222       15,406,397  

 

The Company has no unrecognized tax benefits.

 

FRP tax returns in the U.S. and various states that include the Company are subject to audit by taxing authorities. As of December 31, 2022, the earliest tax year that remains open for audit is 2017. Our effective income tax expense may vary, possibly materially, due to projected effective state tax rates.