INCOME TAXES

The components of (loss) earnings before income taxes, after adjusting the (loss) earnings for non-controlling interests, are as follows:



	Three months ended March 31,						Six months ended March 31,
	2019			2018			2019			2018
United States	$	(1,298,000	)	$	(982,000	)	$	(2,422,000	)	$	(2,125,000	)
Canada	(862,000		)	1,858,000			(4,443,000		)	1,481,000
	$	(2,160,000	)	$	876,000		$	(6,865,000	)	$	(644,000	)

The components of the income tax (benefit) provision are as follows:



	Three months ended March 31,						Six months ended March 31,
	2019			2018			2019			2018
Current	$	(1,000	)	$	(256,000	)	$	(34,000	)	$	(829,000	)
Deferred	(34,000		)	453,000			(106,000		)	523,000
	$	(35,000	)	$	197,000		$	(140,000	)	$	(306,000	)

Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities and any amounts estimated to be realizable through tax carryback strategies, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income.

The repeal of the corporate Alternative Minimum Tax ("AMT") by the Tax Cuts and Jobs Act of 2017 (“TCJA”), enacted on December 22, 2017, provides a mechanism for the refund over time of any unused AMT credit carryovers. Prior to the enactment of the TCJA, it was not more likely than not that the Company’s AMT credit carryovers would provide a future benefit, as such the AMT deferred tax asset had a full valuation allowance. As a result of the TCJA provision for refundability of the AMT, the Company recorded a current income tax benefit of $460,000 in the quarter ended December 31, 2017 to reflect the undiscounted unused AMT credit carryover balance as a non-current income tax receivable. There was no significant impact of the TCJA during the three and six months ended March 31, 2019. Respective portions of this balance will be reclassified to current income taxes receivable when amounts are eligible for refund within one year of the balance sheet date.