Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes.

The Provision for income tax expense included in the financial statements (in thousands):

	Years Ended December 31,
	2023		2022			2021
Included in Net income:
Continuing operations	$	1,516		1,530			10,281
Comprehensive income		551		(515	)		(209	)
Total tax expense	$	2,067		1,015			10,072

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

	Year Ended December 31,
	2023		2022			2021
Current:
Federal	$	2		(214	)		305
State		570		(571	)		1,826
		572		(785	)		2,131
Deferred		1,495		1,800			7,941
Total	$	2,067		1,015			10,072

The deferred taxes are primarily related to the bonus depreciation on property placed in service.

As of December 31, 2023 the company has deferred taxes of approximately $35 million associated with $143 million of gains on sales reinvested through Opportunity Zone investments. These taxes are deferred until the earlier of the sale of the related investments or April 15, 2027 and 10% of gains are excluded from tax once the investments are held five years plus an additional 5% is excluded at seven years.

A reconciliation between the amount of tax shown above and the amount computed at the statutory Federal income tax rate follows (in thousands):

	Year Ended December 31
	2023		2022			2021
Amount computed at statutory
Federal rate	$	1,812		924			7,941
State income taxes (net of Federal   income tax benefit)		178		(30	)		2,634
Other, net		77		121			(503	)
Provision for income taxes	$	2,067		1,015			10,072

In this reconciliation, the category “Other, net” consists of permanent tax differences related to non-deductible expenses, special tax rates and tax credits, interest paid and penalties, and adjustments to prior year estimates. The effective state income tax rate in 2022 and 2023 was favorably impacted both by apportioned interest income in Florida and taxable losses in states with higher income tax rates.

The types of temporary differences and their related tax effects that give rise to deferred tax assets and deferred tax liabilities are presented below (in thousands):

	December 31,
	2023		2022		2021
Deferred tax liabilities:
Property and equipment	$	42,317		41,866		38,143
Investment in opportunity zone		34,966		34,871		30,846
Depletion		706		697		704
Unrealized rents		385		150		58
Prepaid expenses and other		256		31		36
Gross deferred tax liabilities		78,630		77,615		69,787
Deferred tax assets:
Federal tax loss carryforwards		3,153		6,375		3,235
State tax loss carryforwards		6,012		2,359		1,388
Employee benefits and other		9		921		1,117
Gross deferred tax assets		9,174		9,655		5,740
Net deferred tax liability	$	69,456		67,960		64,047

	Years Ended
Other Items - All Gross		12/31/2023	12/31/2022
State NOL Carryovers		49,278,000	38,169,000
Federal NOL Carryovers		28,637,000	30,358,000

The Company has no unrecognized tax benefits.

FRP tax returns in the U.S. and various states that include the Company are subject to audit by taxing authorities. As of December 31, 2023, the earliest tax year that remains open for audit is 2018. Our effective income tax expense may vary,

possibly materially, due to projected effective state tax rates.