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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Summary of consolidated provision for income taxes

The provision for income taxes consists of:

	As of December 31,
	2019				2018				2017
Current federal income tax provision	$	13,952,230			$	15,731,258			$	24,749,832
Current state and local income tax provision	3,656,997				8,560,479				1,774,395
Deferred income tax expense (benefit)	1,079,247				(5,622,396		)		2,893,063
Provision for income taxes	$	18,688,474			$	18,669,341			$	29,417,290

Summary of reconciliation of income tax expense

A reconciliation of income tax expense at the statutory federal rate to the Company’s income tax expense is as follows:

	2019				2018				2017
Income tax computed at statutory rate	$	16,472,987			$	13,646,583			$	28,356,636
Expense (benefit) attributable to redeemable noncontrolling interests(a)	(1,007,012		)		222,624				(564,449		)
State and local income taxes, net of federal benefit	2,835,215				2,993,730				1,153,357
Change in uncertain state and local tax positions, net of federal benefit	(47,197		)		2,982,337				—
Revaluation adjustment of net deferred tax assets(b)	—				(917,288		)		3,557,039
Excess tax benefits on vesting of Restricted Stock	(70,878		)		(667,697		)		(2,420,250		)
Income tax benefit from dividends paid on Restricted Stock	(431,192		)		(340,200		)		(418,583		)
Interest and Penalties	101,010				786,711				—
Other	835,541				(37,459		)		(246,460		)
Income tax expense	$	18,688,474			$	18,669,341			$	29,417,290

(a) The provision for income taxes includes expense (benefit) attributable to the fact that the Company’s operations include the Consolidated Funds which are not subject to federal income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate tax levels.

(b) The provision for income taxes for 2018 includes the remeasurement of our net deferred tax assets of $(0.9) million due to the additional state and local tax we expect to pay in future tax periods. The provision for income taxes for 2017 includes a non-recurring charge of $3.6 million for the remeasurement of our net deferred tax assets to reflect the effect of the U.S. tax law changes enacted on December 22, 2017.

Summary of deferred tax assets and liabilities

Net deferred tax assets consisted of the following at December 31, 2019 and 2018:

	2019				2018
Stock-based compensation	$	4,571,430			$	4,025,255
Accrued compensation	8,496,929				6,684,531
Unrealized losses (gains)	(2,150,699		)		1,323,181
Property and equipment	(553,265		)		(498,271		)
Other assets and liabilities	22,458				(68,596		)
Net deferred tax assets	$	10,386,853			$	11,466,100

Reconciliation of uncertain tax positions

The amount of uncertain tax positions as of December 31, 2019, 2018 and 2017, respectively, which would impact the Company’s effective tax rate if recognized and a reconciliation of the beginning and ending amounts of uncertain tax positions is as follows:

	2019				2018				2017
Uncertain tax positions, beginning of the year	$	2,982,337			$	—			$	—
Gross addition for tax positions of the current year	—				—				—
Gross additions for tax positions of prior years	—				2,982,337				—
Reductions of tax positions of prior years for:
Lapses of applicable statutes of limitations	—				—				—
Settlements during the period	(2,935,140		)		—				—
Changes in judgment/excess reserve	(47,197		)		—				—
Uncertain tax positions, end of year	$	—			$	2,982,337			$	—

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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