General form of registration statement for all companies including face-amount certificate companies

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
 9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Schedule of Components of Income Tax Expense (Benefit)

The table below presents the components of the provision for income taxes: 

 

    September 30,
2020		     December 31,
2019		  
Federal                
Current   $ 242,002     $ 547,749  
Deferred     (455,865 )     (40,546 )
State and Local                
Current     -       -  
Deferred     -       -  
Change in Valuation allowance     327,760       168,651  
Income tax provision (benefit)   $ 113,897     $ 675,854  

The income tax provision consists of the following:

 

    December 31  
    2019     2018  
Federal                
Current     547,749       311,183  
Deferred     (40,546 )     (119,993 )
State and Local                
Current     -       -  
Deferred     -       13,984  
Change in Valuation allowance     168,651       106,009  
Income tax provision (benefit)     675,854       311,183  
Reconciliation between provision/(benefit) for income taxes and income taxes at statutory U.S. federal income tax rate  

Reconciliations of the differences between the provision/(benefit) for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows:

 

    2019     2018  
    Amount     Percent of
Pretax Income		     Amount     Percent of
Pretax Income		  
Current tax at U.S. statutory rate     514,015       21.00 %     189,847       21.00 %
Nondeductible/nontaxable items     2,436       0.10 %     1,343       0.15 %
State taxes, net of federal benefit     -       0.00 %     -       0.00 %
State effect of perm items     -       0.00 %     -       0.00 %
Valuation allowance activity     168,651       6.89 %     106,009       11.72 %
Deferred rate change     -       0.00 %     13,984       1.55 %
Current/deferred rate differential     -       0.00 %     -       0.00 %
Federal payable true-up     (9,248 )     -0.38 %     -       0.00 %
Other     1       0.00 %     -       0.00 %
Total Income Tax Provision/(Benefit)     675,854       27.61 %     311,183       34.42 %
Schedule of deferred income tax assets and liabilities

The table below presents the Company’s deferred tax liabilities:

 

      September 30,
2020		       December 31,
2019		  
Deferred tax assets:                
Net operating loss carryovers   $ -     $ -  
Start-up cost     641,420       313,660  
Total deferred tax assets     641,420       313,660  
Valuation allowance     (641,420 )     (313,660 )
                 
Deferred tax liabilities                
Unrealized gain/loss     -       (128,105 )
Net Deferred tax assets/(liabilities), net of allowance   $ -     $ (128,105 )

The components of deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: 

 

    December 31  
    2019     2018  
Deferred tax assets:                
Unrealized gain/loss     -       -  
Start-up cost     313,660       145,009  
Total deferred tax assets     313,660       145,009  
Valuation allowance     (313,660 )     (145,009 )
                 
Deferred tax liabilities                
Unrealized gain/loss     (128,105 )     -  
Net Deferred tax assets/(liabilities), net of allowance     (128,105 )     -  
Landsea Homes [Member]    
Schedule of Components of Income Tax Expense (Benefit)  

The provision for income taxes are as follows:

 

    Year Ended December 31,  
    2019     2018     2017  
    (dollars in thousands)  
Current:                        
Federal   $ 4,766     $ 8,372     $ —  
State     2,505       3,779       158  
Current tax provision     7,271       12,151       158  
                         
Deferred:                        
Federal     (705 )     (5,442 )     —  
State     (407 )     (2,096 )     —  
Deferred tax provision     (1,112 )     (7,538 )     —  
                         
Total income tax (benefit) provision, net   $ 6,159     $ 4,613     $ 158  
Reconciliation between provision/(benefit) for income taxes and income taxes at statutory U.S. federal income tax rate  

The provision for income taxes varies from the U.S. federal statutory rate. The following reconciliation shows the significant differences in the tax at statutory and effective rates:

 

    Year Ended December 31,  
    2019     2018     2017  
Federal income tax expense     21.0 %     21.0 %     34.0 %
State income tax expense, net of federal tax effect     6.9       7.3       (102.6 )
Permanent differences     0.1       —       (5.7 )
Energy efficient home credit     (5.4 )     —       —  
Return to provision adjustment     (1.2 )     (0.3 )     1.9  
Rate change     0.2       —       (859.9 )
Change of valuation allowance     —       (16.8 )     842.0  
Effective tax rate     21.6 %     11.2 %     (90.3 )%
Schedule of deferred income tax assets and liabilities  

The tax effects of significant temporary differences that give rise to the net deferred tax asset are as follows:

 

    December 31,  
    2019     2018  
    (dollars in thousands)  
Accrued expenses   $ 14,175     $ 14,972  
Right-of-use asset     (1,762 )     —  
Allowance, reserves and other     526       2,048  
Net operating loss and credit carryforward     21       15  
Basis difference in investments     (4,462 )     (9,918 )
Basis difference in property and equipment     (274 )     (238 )
Total deferred tax asset, net   $ 8,224     $ 6,879