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

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Reconciliation between U.S. Statutory Federal Income Tax Rate and Effective Income Tax Rate

A reconciliation between the U.S. statutory federal income tax rate and our effective income tax rate for the years ended December 31, 2014, 2013 and 2012 is provided in the following table:


	For the Years Ended December 31,
	2014			2013			2012
U.S. statutory federal income tax rate⁽¹⁾		0.0	%		0.0	%		34.0	%
State taxes, net of U.S. federal income tax benefit⁽²⁾		26.9	%		41.7	%		4.0	%
Other adjustments⁽³⁾		0.0	%		473.4	%		-4.7	%

Effective tax rate		26.9	%		515.1	%		33.3	%

⁽¹⁾

Beginning with our tax year ended December 31, 2013, we qualified to be taxed as a REIT for federal income tax purposes.

⁽²⁾

In 2012, California state tax returns were filed on a unitary basis with our Adviser. State tax adjustments made to the 2013 and 2014 income tax provision relate to taxes owed to the state of California as a result of prior-year land transfers.

⁽³⁾

Adjustments made to the 2013 income tax provision related primarily to the recognition of $2.1 million of income taxes on a deferred intercompany gain relating to land transfers from prior years. This tax become due upon our election to be taxed as a REIT for the tax year ended December 31, 2013. This was partially offset by the reversal of our deferred tax liability, which resulted in a net benefit of REIT conversion of $743,676.

Breakdown between Current and Deferred Income Taxes

The following table shows the breakdown between the current and deferred income taxes for the year ended December 31, 2012:


	2012
Current portion	$	(268,356	)
Deferred portion		568,675

Total income taxes	$	300,319