(8)	Income Taxes

The provision for income taxes is comprised of the following for the fiscal years ended September 30, 2013 and 2012:


	2013		2012
Current
Federal	$	1,652,900	$	78,900
State		379,300		28,600


		2,032,200		107,500

Deferred
Federal		1,060,900		531,700
State		238,400		122,100

		1,299,300		653,800

Total	$	3,331,500	$	761,300

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


	2013			2012
Federal tax at statutory rate		34.00	%		34.00	%
State tax at statutory rate		5.83			5.73
Permanent and other differences		0.50			4.11
Disallowed capital loss		0.54			—

Effective Tax Rate		40.87	%		43.94	%

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


	2013			2012
Current deferred tax assets:
Accrued compensation	$	19,900		$	23,900
Deferred rent		12,600			35,900
State taxes		129,300			9,700
Capital loss carryforward		110,400			—
Charitable contribution carryover		—			96,200

Total deferred tax assets		272,200			165,700
Less: disallowed capital loss		(110,400	)		—

Net deferred tax assets		161,800			165,700

Noncurrent deferred tax liabilities:
Net Operating Loss		—			44,800
Property and equipment		(46,000	)		(7,300	)
Management contracts		(5,779,000	)		(4,566,600	)

Total deferred tax liabilities		(5,825,000	)		(4,529,100	)


Net deferred tax liabilities	$	(5,663,200	)	$	(4,363,400	)

The tax benefits in 2012 and 2013 for share based compensation awards that will result in future tax deductions are included in deferred tax assets. The Company accounts for APIC adjustments related to tax deductions in excess of book deductions for stock based compensation using the with-and-without method, recognizing a windfall benefit to APIC only after considering all other tax benefits presently available to it.