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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8. Income Taxes

As a REIT, we generally will not be subject to U.S. federal income tax on taxable income that we distribute to our stockholders. We have filed an election to treat our TRS as a taxable REIT subsidiary effective January 1, 2014. In general, our TRS performs additional services for our customers and provides the advisory and property management services to the Managed REITs and otherwise generally engages in any real estate or non-real estate related business. The TRS is subject to corporate U.S. federal and state income tax. Additionally, we own and operate a number of self storage properties located throughout Canada, the income of which is subject to income taxes under the laws of Canada.
 

The following is a summary of our income tax expense (benefit) for the three and six months ended June 30, 2023 and 2022:



 

 

 

For the three months ended June 30, 2023

 

 

 

Federal

 

 

State

 

 

Canadian

 

 

Total

 

Current

 

$

41,170

 

 

$

8,311

 

 

$

122,150

 

 

$

171,631

 

Deferreds

 

 

(2,619

)

 

 

(399

)

 

 

(302,407

)

 

 

(305,425

)

Total

 

$

38,551

 

 

$

7,912

 

 

$

(180,257

)

 

$

(133,794

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30, 2022

 

 

 

Federal

 

 

State

 

 

Canadian

 

 

Total

 

Current

 

$

52,197

 

 

$

9,574

 

 

$

145,907

 

 

$

207,678

 

Deferreds

 

 

(456,319

)

 

 

(69,534

)

 

 

(514,858

)

 

 

(1,040,711

)

Total

 

$

(404,122

)

 

$

(59,960

)

 

$

(368,951

)

 

$

(833,033

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 2023

 

 

 

Federal

 

 

State

 

 

Canadian

 

 

Total

 

Current

 

$

92,727

 

 

$

17,588

 

 

$

218,249

 

 

$

328,564

 

Deferreds

 

 

(5,239

)

 

 

(798

)

 

 

(179,101

)

 

 

(185,138

)

Total

 

$

87,488

 

 

$

16,790

 

 

$

39,148

 

 

$

143,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 2022

 

 

 

Federal

 

 

State

 

 

Canadian

 

 

Total

 

Current

 

$

119,287

 

 

$

22,024

 

 

$

145,907

 

 

$

287,218

 

Deferreds

 

 

(493,838

)

 

 

(75,252

)

 

 

(230,034

)

 

 

(799,124

)

Total

 

$

(374,551

)

 

$

(53,228

)

 

$

(84,127

)

 

$

(511,906

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The major sources of temporary differences that give rise to the deferred tax effects are shown below:

 

 

 

June 30,
2023

 

 

December 31,
2022

 

Deferred tax liabilities:

 

 

 

 

 

 

Intangible contract assets

 

$

(24,147

)

 

$

(30,184

)

Canadian real estate

 

 

(9,682,692

)

 

 

(10,123,376

)

Total deferred tax liability

 

 

(9,706,839

)

 

 

(10,153,560

)

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

Other

 

 

—

 

 

 

90,563

 

Canadian non-capital losses

 

 

7,770,564

 

 

 

7,935,309

 

Total deferred tax assets

 

 

7,770,564

 

 

 

8,025,872

 

 

 

 

 

 

 

Valuation allowance

 

 

(4,226,569

)

 

 

(4,077,932

)

 

 

 

 

 

 

Net deferred tax liabilities

 

$

(6,162,844

)

 

$

(6,205,620

)

 

The Canadian non-capital losses expire between 2032 and 2042. The valuation allowance is associated with the Canadian non-capital losses.