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INCOME TAXES

12 Months Ended

Sep. 28, 2013

NOTE 8. INCOME TAXES

The components of our provision for income taxes for our fiscal years 2013 and 2012 are as follows:

	2013			2012

Current:	$	803,000		$	660,000
Federal		218,000			175,000
State		1,021,000			835,000

Deferred:		(96,000	)		(63,000	)
Federal		(10,000	)		(7,000	)
State		(106,000	)		(70,000	)
	$	915,000		$	765,000

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

	2013			2012

Tax provision at the statutory rate of 34%	$	983,000		$	741,000
State income taxes, net of federal income tax		121,000			94,000
FICA tip credit		(241,000	)		(227,000	)
True up adjustment		22,000			110,000
Other permanent items		30,000			47,000
	$	915,000		$	765,000

We have deferred tax assets which arise primarily due to depreciation recorded at different rates for tax and book purposes offset by cost basis differences in depreciable assets due to the deferral of the recognition of insurance recoveries on casualty losses for tax purposes, investments in and management fees paid by limited partnerships, accruals for potential uninsured claims, bonuses accrued for book purposes but not paid within two and a half months for tax purposes, the capitalization of certain inventory costs for tax purposes not recognized for financial reporting purposes, the recognition of revenue from gift cards not redeemed within twelve months of issuance, allowances for uncollectable receivables, unfunded limited retirement commitments and tax credit carryforwards generated as a result of the application of alternative minimum taxes.

The components of our deferred tax assets at September 28, 2013 and September 29, 2012 were as follows:

	2013		2012

Current:
Reversal of aged payables	$	27,000	$	27,000
Capitalized inventory costs		26,000		25,000
Accrued bonuses		222,000		188,000
Accruals for potential uninsured claims		57,000		30,000
Gift cards		108,000		72,000
Limited partnership management fees		27,000		29,000
	$	467,000	$	371,000
Long-Term:
Book/tax differences in property and equipment	$	632,000	$	540,000
Limited partnership investments		299,000		386,000
Accrued limited retirement		40,000		35,000
	$	971,000	$	961,000

- 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.

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