Saker Aviation Services, Inc.

NOTE 10 – Income Taxes

The Company’s deferred tax assets and deferred tax liabilities consisted of the following:

	December 31,
Deferred tax assets:	2016		2015
Stock based compensation	$	53,000	$	53,000
Goodwill and intangibles		43,000		69,000
Property and equipment		277,000		101,000
Total deferred tax assets		373,000		223,000
Valuation Allowance		(50,000)		(50,000)

Deferred tax asset – net of valuation allowance	$	323,000	$	173,000

Change in valuation allowance	$	—	$	8,000

The provision for income taxes using the statutory federal tax rate as compared to the Company's effective tax rate is summarized as follows:

	December 31,
	2016			2015
Tax expense at statutory rate		34.0	%		34.0	%
State and local income taxes, net of federal		16.2	%		19.8	%
Effective income tax expense rate		50.2	%		53.8	%