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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 9) Income Taxes The Company’s income tax liability is summarized as follows: Summary of Income Tax Liability
|  | 2023 |  |  | 2022 |
|  | December 31, |
|  | 2023 |  |  | 2022 |
Current |  | $ | 246,437 |  |  | $ | 16,352,190 |
Deferred |  |  | 13,506,544 |  |  |  | 14,358,337 |
Total |  | $ | 13,752,981 |  |  | $ | 30,710,527 |
Significant components of the Company’s deferred tax assets and liabilities are approximately as follows: Schedule of Deferred Tax Assets and Liabilities
|  | 2023 |  |  | 2022 |
|  | December 31, |
|  | 2023 |  |  | 2022 |
Assets |  |  |  |  |  |  |  |
Future policy benefits |  | $ | 14,902,816 |  |  | $ | 14,605,453 |
Loan loss reserve |  |  | 142,281 |  |  |  | 448,673 |
Unearned premium |  |  | 534,203 |  |  |  | 582,459 |
Net operating loss |  |  | 1,050,770 |  |  |  | 237,855 |
Deferred compensation |  |  | 2,138,385 |  |  |  | 2,166,593 |
Tax on unrealized appreciation |  |  | 491,271 |  |  |  | 2,590,726 |
Other |  |  | 917,335 |  |  |  | 601,335 |
Less: Valuation allowance |  |  | - |  |  |  | (1,506,144 | )
Total deferred tax assets |  |  | 20,177,061 |  |  |  | 19,726,950 |
Liabilities |  |  |  |  |  |  |  |
Deferred policy acquisition costs |  |  | 18,478,562 |  |  |  | 17,511,778 |
Basis difference in property, equipment and real estate |  |  | 11,054,092 |  |  |  | 11,959,391 |
Value of business acquired |  |  | 1,778,199 |  |  |  | 2,058,785 |
Deferred gains |  |  | 1,308,365 |  |  |  | 1,490,946 |
Trusts |  |  | 1,064,387 |  |  |  | 1,064,387 |
Total deferred tax liabilities |  |  | 33,683,605 |  |  |  | 34,085,287 |
Net deferred tax liability |  | $ | 13,506,544 |  |  | $ | 14,358,337 |
The valuation allowance relates to differences between recorded deferred tax assets and liabilities and ultimate anticipated realization. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2023 and 2022 9) Income Taxes (Continued) The Company’s income tax expense is summarized as follows: Schedule of Components of Income Tax Expense (Benefit)
|  | 2023 |  |  | 2022 |
|  | December 31, |
|  | 2023 |  |  | 2022 |
Current |  |  |  |  |  |  |  |
Federal |  | $ | 4,091,306 |  |  | $ | 15,346,331 |
State |  |  | 209,537 |  |  |  | 3,294,234 |
Total Current Income Tax Expense (Benefit) |  |  | 4,300,843 |  |  |  | 18,640,565 |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | (2,139,124 | ) |  |  | (7,400,620 | )
State |  |  | (356,365 | ) |  |  | (2,553,385 | )
Total Deferred Income Tax Expense (Benefit) |  |  | (2,495,489 | ) |  |  | (9,954,005 | )
Total |  | $ | 1,805,354 |  |  | $ | 8,686,560 |
The reconciliation of income tax expense at the U.S. federal statutory rates is as follows: Schedule of Effective Income Tax Rate Reconciliation
|  | 2023 |  |  | 2022 |
|  | December 31, |
|  | 2023 |  |  | 2022 |
Computed expense at statutory rate |  | $ | 3,423,086 |  |  | $ | 7,219,141 |
State tax expense (benefit), net of federal tax benefit |  |  | (115,994 | ) |  |  | 585,269 |
Change in valuation allowance |  |  | (1,506,144 | ) |  |  | 623,609 |
Other, net |  |  | 4,406 |  |  |  | 258,541 |
Income tax expense |  | $ | 1,805,354 |  |  | $ | 8,686,560 |
The Company’s overall effective tax rate for 2023 and 2022 was 11.1% and 25.3% respectively. The Company’s effective tax rates differ from the U.S. federal statutory rate of 21% partially due to its provision for state income taxes and a decrease to the valuation allowance related to Kilpatrick Life Insurance Company. The decrease in the effective tax rate when compared to the prior year is partially due to a decrease to the valuation allowance in the current period when compared to the prior period year. As of December 31, 2023, the Company had no significant unrecognized tax benefits. As of December 31, 2023, the Company does not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. Federal and state income tax returns for 2020 through 2023 are subject to examination by taxing authorities. Summary of Operating Loss Carryforwards
Net Operating Losses and Tax Credit Carryforwards:
Year of Expiration |  |  |  |
2024 |  | $ | - |
2025 |  |  | - |
2026 |  |  | - |
2027 |  |  | - |
2028 |  |  | - |
Thereafter up through 2038 |  |  | 903,042 |
Indefinite carryforwards |  |  | 2,396,389 |
|  | $ | 3,299,431 |
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2023 and 2022

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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