INCOME TAXES

6 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

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,
	2023		2022		2023		2022
United States	$	(1,275,000)	$	1,016,000	$	(1,257,000)	$	1,908,000
Canada	35,000		1,174,000		1,185,000		1,467,000
	$	(1,240,000)	$	2,190,000	$	(72,000)	$	3,375,000

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

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Current	$	42,000	$	172,000	$	133,000	$	252,000
Deferred	(45,000)		(34,000)		(57,000)		(2,000)
	$	(3,000)	$	138,000	$	76,000	$	250,000

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, 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. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma. As such, Barnwell receives no benefit from consolidated or unitary losses and, therefore, is subject to Oklahoma state taxes. In addition, net operating loss carryforwards, the benefit of which had not previously been recognized due to the Company's continuing full valuation allowance, are estimated to be partially utilized in the Canadian tax jurisdiction in the current year periods as the recognized benefit is now considered more likely to occur than not.