Income Taxes (Tables)

9 Months Ended

Jun. 30, 2013

The provision for income taxes was comprised of the following for the nine months ended June 30, 2013 and 2012:


	6/30/2013		6/30/2012
Current
Federal	$	1,011,800	$	52,600
State		208,500		22,000

		1,220,300		74,600

Deferred
Federal		854,400		392,700
State		195,700		97,800

		1,050,100		490,500

Total	$	2,270,400	$	565,100

Tax Effects of Temporary Differences of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities as of June 30, 2013 and September 30, 2012 are presented below:


	6/30/2013			9/30/2012
Current deferred tax assets:
Accrued compensation	$	20,200		$	23,900
Deferred rent		18,900			35,900
Capital loss carryforward		110,400			—
State taxes		—			9,700
Charitable contribution carryover		71,300			96,200

Gross deferred tax assets		220,800			165,700
Less: Disallowed capital loss		(110,400	)		—

Net deferred tax assets		110,400			165,700

Noncurrent deferred tax liabilities:
Net operating loss		—			44,800
Property and equipment		(45,300	)		(7,300	)
Management contracts		(5,476,800	)		(4,566,600	)

Total deferred tax liabilities		(5,522,100	)		(4,529,100	)

Net deferred tax liabilities	$	(5,411,700	)	$	(4,363,400	)

Principal Reasons for Differences from Federal Statutory Rate

The principal reasons for the differences from the federal statutory rate of 34% are as follows:


	6/30/2013			6/30/2012
Federal tax at statutory rate		34.0	%		34.0	%
State tax at statutory rate		5.8	%		5.8	%
Permanent differences		0.5	%		4.8	%
Disallowed capital loss		0.8	%		0.0	%

Effective Tax Rate		41.1	%		44.6	%