(12) INCOME TAXES:

The provision (benefit) for income taxes consists of the following (in thousands):


	Year Ended April 30,
	2020		2019
Current:
Federal	$	(36)	$	(414)
State and local		112		5
		76		(409)
Deferred:
Federal		(1,597)		(193)
State and local		(201)		(106)
		(1,798)		(299)
Total benefit for income taxes	$	(1,722)	$	(708)

The components of the net deferred income taxes are as follows (in thousands):


	April 30,
	2020		2019
Deferred income tax assets:
State tax loss carryforwards	$	4,622	$	4,287
U.S. federal NOL carryforward		3,746		2,079
Accrued pension costs		1,258		1,608
Vacation accrual		52		12
Real estate basis differences		4,096		3,725
Other		194		117
Total deferred income tax assets		13,968		11,828


Deferred income tax liabilities:
Depreciable assets		(1,341)		(1,138)
Deferred gains on investment assets		(2,277)		(2,110)
Other		—		(36)
Total deferred income tax liabilities		(3,618)		(3,284)
Valuation allowance for realization of certain deferred income tax assets		(4,270)		(4,008)
Net deferred income tax asset	$	6,080	$	4,536

A valuation allowance is provided when it is considered more likely than not that certain deferred tax assets will not be realized. The valuation allowance relates primarily to deferred tax assets, including net operating loss carryforwards, in states where the Company either has no current operations or its operations are not considered likely to realize the deferred tax assets due to the amount of the applicable state net operating loss or its expected expiration date. The $262,000 increase in the valuation allowance in 2020 is related to the increase in state net operating losses that are not expected to be realizable.

The Company has federal net operating loss carryforwards of $17,838,000, of which $147,000 will expire beginning in 2038 and the remaining amount does not have an expiration. In addition, the Company has state net operating loss carryforwards of $118,209,000 that expire beginning in fiscal year ending April 30, 2021.

The following table reconciles taxes computed at the U.S. federal statutory income tax rate from continuing operations to the Company’s actual tax provision (in thousands):


	Year Ended April 30,
	2020		2019
Computed tax benefit at statutory rate	$	(1,603)	$	(666)
Increase (reduction) in tax resulting from:
Deferred tax rate changes		163		(137)
Change in valuation allowances		262		773
State income taxes, net of federal income tax effect		(481)		(869)
Meals and entertainment		—		13
Permanent items		1		—
Other		(64)		178
Actual tax provision	$	(1,722)	$	(708)

The Company is subject to U.S. federal income taxes and various state and local income taxes. Tax regulations within each jurisdiction are subject to interpretation and require significant judgment to apply. The Company is not currently under examination by any tax authorities with respect to its income tax returns. Other than the U.S. federal tax return, in nearly all jurisdictions, the tax years through the fiscal year ended April 30, 2016 are no longer subject to examination due to the expiration of the applicable statutes of limitations.

ASC 740 clarifies the accounting for uncertain tax positions, prescribing a minimum recognition threshold a tax position is required to meet before being recognized, and providing guidance on the derecognition, measurement, classification and disclosure relating to income taxes. The following table summarizes the beginning and ending gross amount of unrecognized tax benefits:


	2020		2019
	(in thousands)
Gross unrecognized tax benefits at beginning of year	$	—	$	58
Gross increases:
Additions based on tax positions related to current year		—		—
Additions based on tax positions of prior years		—		—
Gross decreases:
Reductions based on tax positions of prior years		—		—
Reductions based on the lapse of the applicable statute of limitations		—		(58)
Gross unrecognized tax benefits at end of year	$	—	$	—

As a result of the lapse of the statute of limitations, the Company’s total tax effect of gross unrecognized tax benefits in the accompanying financial statements of $58,000 at April 30, 2018 was recognized during 2019.

The Company has elected to include interest and penalties in its income tax expense. The Company had no accrued interest or penalties at April 30, 2020 and 2019.