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Federal Income Taxes | 12 Months Ended
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Jan. 31, 2021
Income Tax Disclosure [Abstract] |
Federal Income Taxes | 18. FEDERAL INCOME TAXES The Trust and subsidiaries have income tax net operating loss carryforwards of approximately $5.4 million at January 31, 2021. In 2005, the Trust had an ownership change within the meaning of Internal Revenue Code Section 382. However, the Trust determined that such ownership change would not have a material impact on the future use of the net operating losses. The Trust amended the federal and state income tax returns for tax years 2017 and 2018, resulting in a recalculation of the net operating loss carry-forward. The impact of the amended returns are reflected in the below data. Total and net deferred income tax assets on January 31,
|  | 2021 |  |  | 2020 |
Net operating loss carryforwards |  | $ | 1,352,000 |  |  | $ | 1,075,000 |
Bad debt allowance |  |  | 2,000 |  |  |  | 4,000 |
Accrued expenses |  |  | (2,000 | ) |  |  | (4,000 | )
Syndications |  |  | 2,923,000 |  |  |  | 2,923,000 |
Prepaid Insurance |  |  | (4,000 | ) |  |  | - |
Alternative minimum tax credit |  |  | 51,000 |  |  |  | 51,000 |
Total deferred tax asset |  |  | 4,322,000 |  |  |  | 4,049,000 |
Deferred income tax liability associated with book/tax |  |  | (1,502,000 | ) |  |  | (1,551,000 | )
Net deferred income tax asset |  |  | 2,820,000 |  |  |  | 2,498,000 |
Valuation allowance |  |  | (2,820,000 | ) |  |  | (2,498,000 | )
|  | $ | - |  |  | $ | - |
Income taxes for the year ended January 31,
|  | 2021 |  |  | 2020 |
Current income tax provision (benefit) |  |  | (68,661 | ) |  |  | (294,402 | )
Deferred income tax provision (benefit) |  |  | 321,306 |  |  |  | 384,298 |
Change in valuation allowance |  |  | (321,306 | ) |  |  | (384,298 | )
Net income tax expense (benefit) |  |  | (68,661 | ) |  |  | (294,402 | )
The differences between the statutory and effective tax rates are as follows for the year ended January 31, 2021:
|  | 2021 |
|  | Amount |  |  | Percent |
Federal statutory rates |  | $ | (309,200 | ) |  |  | 21 | %
State income taxes |  |  | (77,000 | ) |  |  | 5 | %
Change in valuation allowance |  |  | 321,300 |  |  |  | -22 | %
True-up to prior year returns |  |  | (4,000 | ) |  |  | 0 | %
Effective rate |  | $ | - |  |  |  | 5 | %
The differences between the statutory and effective tax rates are as follows for the year ended January 31, 2020:
|  | 2020 |
|  | Amount |  |  | Percent |
Federal statutory rates |  | $ | (477,000 | ) |  |  | 21 | %
State income taxes |  |  | (120,000 | ) |  |  | 5 | %
Change in valuation allowance |  |  | 384,300 |  |  |  | -17.00 | %
Amended to 2017 Amended Tax Returns and Other Adjustments |  |  | (81,700 | ) |  |  | 4 | %
Effective rate |  | $ | - |  |  |  | 0 | %
The Trust is taxed as a C-Corporation. The Trust’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Trust has received various IRS and state tax jurisdiction notices which the Trust in the process of responding to in which management believes the notices are without merit and expect full remediation of all tax notices. The Trust and subsidiaries have deferred tax assets of $4.3 million which includes cumulative net operating loss carryforwards of $1.3 million and syndications of $2.9 million, and deferred tax liability associated with book/tax differences of $1.5 million as of January 31, 2021. We have evaluated the net deferred tax asset and determined that it is not more likely than not we will receive full benefit from the net operating loss carryforwards. Therefore, we have determined a valuation allowance of approximately $2.8 million.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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