Bermello, Ajamil & Partners - Laserfiche WebLink

Home Browse Search

.. . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . '. . .. . . . . . . . . . . . . . . . BERMELLO, AJAMIL & PARTNERS, INC. AND SUBSIDIARY NOTES TO CONSOUDATED FINANCIAL STATEMENTS DECEMBER 31,2006 AND 2005 NOTE 7. LONG-TERM DEBT AND LINE OF CREDIT (CONTINUED) The maturities of debt for each of the years subsequent to December 31, 2006 are as follows: 2007 $ 129,547 2008 141,031 2009 5.003 $ 275.581 NOTE 8. INCOME TAXES The Company, with the consent of its stockholders, has elected under the Internal Revenue Code to be an S Corporation for federal tax purposes. In lieu of corporation federal income taxes, the stockholders of an S Corporation are taxed on their proportionate share of the Company's federal taxable income. Therefore, no provision or liability for federal income taxes has been included in the financial statements. Consequently, all taxes reflected on the provision are related to the New York state and city income taxes. There was no provision for state taxes as of December 31, 2005. The provision for New York state and city income taxes is as follows as of December 31 : 2006 Deferred State $ 162.188 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes and operating loss carryforwards. The tax effects of significant items comprising the Company's net deferred tax liability as of December 31, 2006 are as follows: Liabilities: Depreciable property Accrual to cash method of accounting adjustment 2006 $ 10,487 151.701 Net deferred tax liability $ 162.188 .17-