Note 16 - Income Taxes

9 Months Ended

Sep. 30, 2019

16.	INCOME TAXES

In relation to the Partnership’s taxable subsidiary, the tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at

September 30, 2019

, are presented below (dollars in thousands):

Deferred Tax Asset
Difference in bases of property, plant and equipment	$	236
Net operating loss carryforwards		24
Deferred tax asset		260
Less: valuation allowance		260
Net deferred tax asset	$	-

The Partnership has considered the taxable income projections in future years, whether future revenue and operating cost projections will produce enough taxable income to realize the deferred tax asset based on existing service rates and cost structures and the Partnership’s earnings history exclusive of the loss that created the future deductible amount for the Partnership’s subsidiary that is taxed as a corporation for purposes of determining the likelihood of realizing the benefits of the deferred tax assets. As a result of the Partnership’s consideration of these factors, the Partnership has provided a valuation allowance against its deferred tax asset as of

September 30, 2019