INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2020

Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests

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


	Year ended September 30,
	2020		2019
United States	$	1,518,000	$	(3,039,000)
Canada	(6,271,000)		(9,606,000)
	$	(4,753,000)	$	(12,645,000)

Schedule of components of the income tax provision (benefit)

The components of the income tax provision (benefit) related to the above loss are as follows:


	Year ended September 30,
	2020		2019
Current benefit:
United States – Federal	$	—	$	(31,000)
United States – State	(23,000)		(52,000)
Canadian	—		(4,000)
Total current	(23,000)		(87,000)
Deferred provision (benefit):

United States – State	26,000		(24,000)
Canadian	—		(120,000)
Total deferred	26,000		(144,000)
	$	3,000	$	(231,000)

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 (benefit) and the amount computed by multiplying the loss attributable to Barnwell before income taxes by the U.S. federal tax rate of 21% is as follows:


	Year ended September 30,
	2020		2019
Tax benefit computed by applying statutory rate	$	(998,000)	$	(2,655,000)
Impact of TCJA limitation on post-TCJA net operating loss carryforwards	(260,000)		260,000
Increase in the valuation allowance	1,978,000		3,003,000
Impact of TCJA on alternative minimum tax credit carryovers	—		(31,000)
Additional effect of the foreign tax provision on the total tax provision	(762,000)		(736,000)

U.S. state tax provision, net of federal benefit	3,000		(76,000)
Other	42,000		4,000
	$	3,000	$	(231,000)

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,
	2020		2019
Deferred income tax assets:
Foreign tax credit carryover under U.S. tax law	$	2,421,000	$	2,421,000

U.S. federal net operating loss carryover	8,874,000		8,366,000
U.S. state unitary net operating loss carryovers	877,000		873,000
Canadian net operating loss carryovers	1,351,000		850,000
Tax basis of investment in land in excess of book basis under U.S. tax law	306,000		296,000
Property and equipment accumulated book depreciation and depletion in excess of tax under Canadian tax law	1,421,000		308,000
Property and equipment accumulated book depreciation and depletion in excess of tax under U.S. tax law	931,000		945,000
Liabilities accrued for books but not for tax under U.S. tax law	1,894,000		2,250,000
Liabilities accrued for books but not for tax under Canadian tax law	1,591,000		1,641,000
Other	345,000		294,000
Total gross deferred income tax assets	20,011,000		18,244,000
Less valuation allowance	(19,357,000)		(17,687,000)
Net deferred income tax assets	654,000		557,000
Deferred income tax liabilities:

Book basis of investment in land development partnerships in excess of tax basis under U.S. tax law	(654,000)		(557,000)
Book basis of investment in land development partnerships in excess of tax basis under U.S. state non-unitary tax law	(194,000)		(168,000)

Total deferred income tax liabilities	(848,000)		(725,000)
Net deferred income tax liability	$	(194,000)	$	(168,000)
Reported as:
Deferred income tax assets	—		—
Deferred income tax liabilities	(194,000)		(168,000)
Net deferred income tax liability	$	(194,000)	$	(168,000)

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, 2020:


Jurisdiction			Fiscal Years Open
U.S. federal			2017 – 2019
Various U.S. states			2017 – 2019
Canada federal			2013 – 2019
Various Canadian provinces			2013 – 2019