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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Summary of consolidated provision for income taxes

The provision for income taxes consists of:

			As of December 31,
			2020						2019						2018
Current federal income tax provision			$	9,633,927					$	13,952,230					$	15,731,258
Current state and local income tax provision			2,374,534						3,656,997						8,560,479
Deferred income tax expense (benefit)			1,949,407						1,079,247						(5,622,396)
Provision for income taxes			$	13,957,868					$	18,688,474					$	18,669,341

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:

			2020						2019						2018
Income tax computed at statutory rate			$	10,945,831					$	16,472,987					$	13,646,583
Expense (benefit) attributable to redeemable noncontrolling interests(a)			104,035						(1,007,012)						222,624
State and local income taxes, net of federal benefit			1,875,882						2,835,215						2,993,730
Internal revenue code section 162 limitations			632,705						625,009						400,060
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)
Excess tax deficit (benefit) on vesting of restricted stock			612,930						(70,878)						(667,697)
Income tax benefit from dividends paid on restricted stock			(455,283)						(431,192)						(340,200)
Interest and penalties			1,460						101,010						786,711
Other			240,308						210,532						(437,519)
Income tax expense			$	13,957,868					$	18,688,474					$	18,669,341

(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 additional state and local tax that the Company expects to pay in future tax periods.

Summary of deferred tax assets and liabilities

Net deferred tax assets consisted of the following as of December 31, 2020 and 2019:

			2020						2019
Stock-based compensation			$	3,500,026					$	4,571,430
Accrued compensation			9,026,113						8,496,929
Unrealized gains			(3,145,177)						(2,150,699)
Property and equipment			(963,610)						(553,265)
Other assets and liabilities			20,094						22,458
Net deferred tax assets			$	8,437,446					$	10,386,853

Reconciliation of uncertain tax positions

The amount of uncertain tax positions as of December 31, 2020, 2019, and 2018, 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:

			2020						2019						2018
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 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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