|6 Months Ended|
Jun. 30, 2019
|Income Tax Disclosure [Abstract]|
Effective January 1, 2018, the statutory Federal income tax rate for the Trust decreased from 35% to 21%. The Trust’s effective Federal income tax rate is less than the 21% statutory rate because taxable income is reduced by statutory percentage depletion allowed on mineral royalty income.
The Trust structured the $100.0 million land sale consummated in January 2019 as a §1031 exchange for federal income tax purposes. As a result, the current federal income tax liability and expense were each reduced by approximately $15.3 million during the six months ended June 30, 2019, while the deferred federal income tax liability and expense increased by the same amount.
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