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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests | The components of earnings before income taxes, after adjusting the earnings for non-controlling interests, are as follows:
| Year ended September 30,
| 2022 |  | 2021
United States | $ | 739,000 |  |  | $ | 5,436,000 |
Canada | 5,121,000 |  |  | 1,149,000 |
| $ | 5,860,000 |  |  | $ | 6,585,000 |
Schedule of components of the income tax provision (benefit) | The components of the income tax provision related to the above earnings are as follows:
| Year ended September 30,
| 2022 |  | 2021
Current provision: |  |  |
United States – Federal |  |  |
Before operating loss carryforwards | $ | 727,000 |  |  | $ | 60,000 |
Benefit of operating loss carryforwards | (665,000) |  |  | (60,000) |
After operating loss carryforwards | 62,000 |  |  | — |
United States – State |  |  |
Before operating loss carryforwards | 518,000 |  |  | 174,000 |
Benefit of operating loss carryforwards | (62,000) |  |  | (7,000) |
After operating loss carryforwards | 456,000 |  |  | 167,000 |
Canadian |  |  |
Before operating loss carryforwards | 510,000 |  |  | — |
Benefit of operating loss carryforwards | (510,000) |  |  | — |
After operating loss carryforwards | — |  |  | — |
Total current | 518,000 |  |  | 167,000 |
Deferred (benefit) provision: |  |  |
United States – State | (171,000) |  |  | 165,000 |
Canadian | — |  |  | — |
Total deferred | (171,000) |  |  | 165,000 |
| $ | 347,000 |  |  | $ | 332,000 |
Summary of reconciliation between the reported income tax provision (benefit) and the amount computed by multiplying the loss by the U.S. federal tax rate | A reconciliation between the reported income tax expense and the amount computed by multiplying the earnings attributable to Barnwell before income taxes by the U.S. federal tax rate of 21% is as follows:
| Year ended September 30,
| 2022 |  | 2021
Tax provision computed by applying statutory rate | $ | 1,231,000 |  |  | $ | 1,383,000 |
Decrease in the valuation allowance | (1,450,000) |  |  | (1,427,000) |
Additional effect of the foreign tax provision on the total tax provision | 130,000 |  |  | 31,000 |
Uncertain tax positions | 62,000 |  |  | — |
U.S. state tax provision, net of federal benefit | 285,000 |  |  | 332,000 |
Other | 89,000 |  |  | 13,000 |
| $ | 347,000 |  |  | $ | 332,000 |
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:
| September 30,
| 2022 |  | 2021
Deferred income tax assets: |  |  |
Foreign tax credit carryover under U.S. tax law | $ | 953,000 |  |  | $ | 1,197,000 |
U.S. federal net operating loss carryover | 8,258,000 |  |  | 8,846,000 |
U.S. state unitary net operating loss carryovers | 1,117,000 |  |  | 939,000 |
Canadian net operating loss carryovers | 877,000 |  |  | 1,411,000 |
Tax basis of investment in land in excess of book basis under U.S. tax law | 26,000 |  |  | 305,000 |
Property and equipment accumulated book depreciation and depletion in excess of tax under Canadian tax law | — |  |  | 1,091,000 |
Property and equipment accumulated book depreciation and depletion in excess of tax under U.S. tax law | 568,000 |  |  | 699,000 |
Liabilities accrued for books but not for tax under U.S. tax law | 882,000 |  |  | 1,225,000 |
Liabilities accrued for books but not for tax under Canadian tax law | 2,120,000 |  |  | 1,813,000 |
Foreign currency loss under U.S. tax law | 102,000 |  |  | — |
Foreign currency loss under Canadian tax law | 124,000 |  |  | — |
Other | 278,000 |  |  | 442,000 |
Total gross deferred income tax assets | 15,305,000 |  |  | 17,968,000 |
Less valuation allowance | (12,608,000) |  |  | (14,616,000) |
Net deferred income tax assets | 2,697,000 |  |  | 3,352,000 |
Deferred income tax liabilities: |  |  |
Property and equipment accumulated tax depreciation and depletion in excess of book under Canadian tax law | (280,000) |  |  | — |
Book basis of investment in land development partnerships in excess of tax basis under U.S. tax law | (545,000) |  |  | (1,156,000) |
Book basis of investment in land development partnerships in excess of tax basis under U.S. state non-unitary tax law | (166,000) |  |  | (352,000) |
U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. tax law | (121,000) |  |  | (142,000) |
U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. state tax law | (23,000) |  |  | (7,000) |
U.S. tax law impact of foreign branch deferred tax asset under Canadian tax law | (1,465,000) |  |  | (1,782,000) |
Other | (285,000) |  |  | (272,000) |
Total deferred income tax liabilities | (2,885,000) |  |  | (3,711,000) |
Net deferred income tax liability | $ | (188,000) |  |  | $ | (359,000) |
Reported as: |  |  |
Deferred income tax assets | — |  |  | — |
Deferred income tax liabilities | (188,000) |  |  | (359,000) |
Net deferred income tax liability | $ | (188,000) |  |  | $ | (359,000) |
Schedule of unrecognized tax benefits | Below are the changes in unrecognized tax benefits.
| Year ended September 30,
| 2022 |  | 2021
Balance at beginning of year | $ | — |  |  | $ | — |
Effect of tax positions taken in prior years | 60,000 |  |  | — |
Accrued interest related to tax positions taken | 2,000 |  |  | — |
Balance at end of year | $ | 62,000 |  |  | $ | — |
Summary of tax years, by jurisdiction, that remain subject to examination by taxing authorities | Included below is a summary of the tax years, by jurisdiction, that remain subject to examination by taxing authorities at September 30, 2022:
Jurisdiction | Fiscal Years Open
U.S. federal | 2019 – 2021
Various U.S. states | 2019 – 2021
Canada federal | 2015 – 2021
Various Canadian provinces | 2015 – 2021

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