(6) Income Taxes

The provision for income taxes was comprised of the following for the three months ended December 31, 2013 and 2012:


	12/31/2013		12/31/2012
Current
Federal	$	630,900	$	199,000
State		212,400		(1,700	)

		843,300		197,300

Deferred
Federal		441,400		299,600
State		87,600		87,500

		529,000		387,100

Total	$	1,372,300	$	584,400

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities as of December 31, 2013 and September 30, 2013 are presented below:


	12/31/2013			9/30/2013
Current deferred tax assets:
Accrued compensation	$	43,000		$	19,900
Deferred rent		6,300			12,600
State taxes		72,100			129,300
Capital loss carryforward		10,600			110,400

Gross deferred tax assets		132,000			272,200
Less: Disallowed capital loss		(10,600	)		(110,400	)

Net deferred tax assets		121,400			161,800

Noncurrent deferred tax liabilities:
Property and equipment		(48,700	)		(46,000	)
Management contracts		(6,265,200	)		(5,779,000	)

Total deferred tax liabilities		(6,313,900	)		(5,825,000	)

Net deferred tax liabilities	$	(6,192,500	)	$	(5,663,200	)

The Company’s effective tax rates for the three months ended December 31, 2013 and 2012 were 48.5% and 43.2%, respectively, and differ from the federal statutory rate of 34% for the following principal reasons:


	12/31/2013			12/31/2012
Federal tax at statutory rate		34.00	%		34.00	%
True-up of prior year tax provision		8.02	%		—
State tax at statutory rate		5.83	%		5.83	%
Permanent differences		0.65	%		0.14	%
Disallowed capital loss		—			3.23	%

Effective Tax Rate		48.50	%		43.20	%

The effective tax rate, which is normally about 40%, was higher for the period ended December 31, 2013 as a result of a one-time tax charge to true-up the prior year tax provision due to the inability to deduct for income tax purposes certain compensation expenses under Section 162(m) of the United States Internal Revenue Code of 1986, as amended. The effective tax rate was higher for the period ended December 31, 2012 due to a disallowed capital loss carryforward created by a realized loss on the sale of the available for sale investment.