Income Taxes

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 7:  Income Taxes

The provisions for income taxes for the years ended September 30, 2021 and 2020 are as follows:

	2021		2020
Current:
Federal	$	661,700	$	291,200
State		375,400		126,200
		1,037,100		417,400
Deferred:
Federal		24,400		(20,900)
State		(4,300)		(800)
Provision for income taxes	$	1,057,200	$	395,700

The Company uses the asset-liability method of computing deferred taxes in accordance with FASB ASC Topic 740. The difference between the effective tax rate and the statutory tax rates is due primarily to the impact of state taxes net of the federal tax benefit and nondeductible variable costs of shareholder usage.

At September 30, 2021 and 2020, the deferred income tax liabilities consisted of the following:

	2021		2020
Deferred tax assets (liabilities):
Federal	$	(390,800)	$	(366,400)
State		(52,500)		(56,700)
Net deferred income taxes	$	(443,300)	$	(423,100)

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The majority of the balance is due to timing differences of depreciation expense, caused by the use of accelerated depreciation methods for tax calculations.

At September 30, 2021 and 2020, the deferred income tax liabilities consisted of the following temporary differences:

	2021		2020
Depreciation	$	(552,900)	$	(492,200)
Unrealized gain on investments		-		-
Total gross deferred tax liabilities		(552,900)		(492,200)
Vacation accrual		30,100		30,700
Federal benefit of state taxes		79,500		38,400
Total gross deferred tax assets		109,600		69,100
	$	(443,300)	$	(423,100)

There were no net operating loss or tax credit carryforwards for the year ended September 30, 2021 or 2020 for federal or state.