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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes |
8. | Income Taxes
The Company has elected to be taxed as a REIT under the applicable provisions of the Internal Revenue Code with certain of its subsidiaries treated as taxable REIT subsidiary (“TRS”) entities, which are subject to federal and state income taxes. The following table summarizes the tax status of dividends paid on our common shares:
|  | Year ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Dividend per share |  | $ | 2.19 |  | (1) |  | 2.34 |  |  |  | 2.22 |
Ordinary income |  |  | 100 | % |  |  | 97 | % |  |  | 98 | %
Capital gain |  |  | — | % |  |  | 3 | % |  |  | — | %
Qualified dividend income |  |  | — | % |  |  | — | % |  |  | 2 | %
Section 199A dividend |  |  | 100 | % |  |  | 97 | % |  |  | 98 | %
(1) During 2020, the Company declared four quarterly dividends, the last of which was paid on January 5, 2021, with a portion allocated to the 2020 dividend period, and the balance allocated to 2021. Our consolidated expense (benefit) for income taxes for the years ended December 31, 2020, 2019, and 2018 was as follows:
|  | Year ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 2,157 |  |  |  | 1,576 |  |  |  | 5,667 |
Deferred |  |  | (891 | ) |  |  | (331 | ) |  |  | (5,145 | )
Total income tax expense (benefit) (1) |  | $ | 1,266 |  |  |  | 1,245 |  |  |  | 522 |
| (1) | Includes $(355,000), $757,000 and $706,000 of tax (benefit) expense presented within Other operating expenses during the years ended December 31, 2020, 2019, and 2018, respectively. Additionally, $1.6 million, $488,000, and ($184,000) of tax expense (benefit) is presented within Gain on sale of real estate (or Provision for impairment), net of tax, during the years ended December 31, 2020, 2019, and 2018, respectively. |
The TRS entities are subject to federal and state income taxes and file separate tax returns. Income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal income tax rate to pretax income of the TRS entities, as follows:
|  | Year ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Computed expected tax (benefit) expense |  | $ | (3,665 | ) |  |  | 1,587 |  |  |  | (584 | )
State income tax, net of federal benefit |  |  | (593 | ) |  |  | 650 |  |  |  | 636 |
Valuation allowance |  |  | 1,043 |  |  |  | (91 | ) |  |  | (392 | )
Permanent items |  |  | 5,079 |  |  |  | (819 | ) |  |  | 1,067 |
All other items |  |  | (598 | ) |  |  | (82 | ) |  |  | (205 | )
Total income tax expense (1) |  |  | 1,266 |  |  |  | 1,245 |  |  |  | 522 |
Income tax expense attributable to operations (1) |  | $ | 1,266 |  |  |  | 1,245 |  |  |  | 522 |
| (1) | Includes ($355,000), $757,000, and $706,000 of tax (benefit) expense presented within Other operating expenses during the years ended December 31, 2020, 2019, and 2017, respectively. Additionally, $1.6 million, $488,000, and ($184,000) of tax expense (benefit) is presented within Gain on sale of real estate (or Provision for impairment), net of tax, during the years ended December 31, 2020, 2019 and 2018, respectively. |
The tax effects of temporary differences (included in Accounts payable and other liabilities in the accompanying Consolidated Balance Sheets) are summarized as follows:
|  | December 31, |
(in thousands) |  | 2020 |  |  | 2019 |
Deferred tax assets |  |  |  |  |  |  |  |
Provision for impairment |  | $ | 508 |  |  |  | — |
Deferred interest expense |  |  | — |  |  |  | 1,341 |
Fixed assets |  |  | 1,077 |  |  |  | — |
Net operating loss carryforward |  |  | 109 |  |  |  | 106 |
Other |  |  | 771 |  |  |  | 88 |
Deferred tax assets |  |  | 2,465 |  |  |  | 1,535 |
Valuation allowance |  |  | (2,465 | ) |  |  | (680 | )
Deferred tax assets, net |  | $ | — |  |  |  | 855 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Straight line rent |  | $ | (88 | ) |  |  | (100 | )
Fixed assets |  |  | (12,943 | ) |  |  | (14,404 | )
Deferred tax liabilities |  |  | (13,031 | ) |  |  | (14,504 | )
Net deferred tax liabilities |  | $ | (13,031 | ) |  |  | (13,649 | )
The net deferred tax liability decreased during 2020 due to sales and depreciation of properties at TRS entities. The Company believes it is more likely than not that the remaining deferred tax assets will not be realized unless tax planning strategies are implemented.

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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