Texas Pacific Land Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 6 - Income Taxes

Note 6 - Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

(6)

Income Taxes

The income tax provision charged to operations for the years ended December 31, 2013, 2012, and 2011 was as follows:

	2013			2012			2011
Current:
U.S. federal	$	13,381,265		$	10,046,442		$	11,053,133
State and local		327,730			241,402			265,498
		13,708,995			10,287,844			11,318,631
Deferred expense		(784,925	)		(612,776	)		(1,157,482	)
	$	12,924,070		$	9,675,068		$	10,161,149

The Trust is taxed as if it were a corporation. Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 35% to income before Federal income taxes as a result of the following:

	2013			2012			2011
Computed tax expense at the statutory rate	$	14,049,902		$	10,263,010		$	10,764,571
Reduction in income taxes resulting from:
Statutory depletion		(1,317,177	)		(799,957	)		(802,104	)
State taxes		312,340			227,718			238,860
Other, net		(120,995	)		(15,703	)		(40,178	)
	$	12,924,070		$	9,675,068		$	10,161,149

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2013 and 2012 are as follows:

	2013			2012
Basis difference in pension plan liability	$	(69,659	)	$	311,868
Total deferred tax asset (liability)		(69,659	)		311,868

Basis differences in real estate acquired through foreclosure		237,697			237,697
Deferred installment revenue on land sales for tax purposes		1,366,519			2,348,667
Total deferred tax liability		1,604,216			2,586,364
Net deferred tax liability	$	1,673,875		$	2,274,496

The Trust files a United States Federal income tax return. With few exceptions, the Trust is no longer subject to U. S. Federal income tax examination by tax authorities for years before 2010.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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