Note 22 - Income Tax
|12 Months Ended|
Dec. 31, 2020
|Note 22 - Income Tax||
Note 22 Income tax
The provision (benefit) for income taxes for the years ended December 31, 2020 and 2019 consist of the following:
The Company has net deferred tax assets resulting from a timing difference in recognition of depreciation and reserves for uncollectible accounts receivable and from net operating loss carryforwards.
At December 31, 2020, the Company had approximately $7,950,000 of federal net operating loss carryforwards of which approximately $3,443,000 can be carried forward indefinitely and the remaining balance will expire in between 2027 and 2036. The Company has a California net operating loss carryforward of approximately $6,480,000 that begins expiring in 2024. Mentor relocated to Texas in September 2020 and the Companys ability to utilize the California net operating loss carryforwards is dependent on future generation of California taxable income. The Company has an Arizona net operating loss carry forward of approximately $147,000 that begins expiring in 2031.
The income tax provision (benefit) differs from the amount computed by applying the U.S. federal statutory tax rate of 21% in 2020 and 2019 to net income (loss) before income taxes for the years ended December 31, 2020 and 2019 as a result of the following:
The significant components of deferred income tax assets as of December 31, 2020 and 2019 after applying enacted corporate income tax rates are as follows:
The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. All tax years from 2017 to 2020 are subject to examination
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.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef