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Income Taxes
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
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 primary 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 nine months ended September 30, 2023 and 2022:
 
    
For the three months ended September 30, 2023
  
    
Federal
    
State
    
Canadian
    
Total
  
Current
   
$
116,507
    
$
20,536
    
$
155,044
    
$
292,087
  
Deferreds
     
(2,619
) 
    
(399
) 
    
(1,339,119
) 
    
(1,342,137
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
$
113,888
    
$
20,137
    
$
(1,184,075
) 
  
$
(1,050,050
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
    
For the three months ended September 30, 2022
  
    
Federal
    
State
    
Canadian
    
Total
  
Current
   
$
82,097
    
$
9,666
    
$
134,113
    
$
225,876
  
Deferreds
     
(2,619
) 
    
(399
) 
    
(120,625
) 
    
(123,643
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
$
79,478
    
$
9,267
    
$
13,488
    
$
102,233
  
  
 
 
    
 
 
    
 
 
    
 
 
  
    
For the nine months ended September 30, 2023
  
    
Federal
    
State
    
Canadian
    
Total
  
Current
   
$
209,234
    
$
38,124
    
$
373,293
    
$
620,651
  
Deferreds
     
(7,858
) 
    
(1,197
) 
    
(1,518,220
) 
    
(1,527,275
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
$
201,376
    
$
36,927
    
$
(1,144,927
) 
  
$
(906,624
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
    
For the nine months ended September 30, 2022
  
    
Federal
    
State
    
Canadian
    
Total
  
Current
   
$
201,384
    
$
31,690
    
$
280,020
    
$
513,094
  
Deferreds
     
(496,457
) 
    
(75,651
) 
    
(343,228
) 
    
(915,336
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
$
(295,073
) 
  
$
(43,961
) 
  
$
(63,208
) 
  
$
(402,242
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
The major sources of temporary differences that give rise to the deferred tax effects are shown below:
 
    
September 30,
2023
     
December 31,
2022
  
Deferred tax liabilities:
      
Intangible contract assets
   
$
(21,129
) 
   
$
(30,184
) 
Canadian real estate
     
(9,569,543
) 
     
(10,123,376
) 
  
 
 
     
 
 
  
Total deferred tax liability
     
(9,590,672
) 
     
(10,153,560
) 
  
 
 
     
 
 
  
Deferred tax assets:
      
Other
     
143,173
       
90,563
  
Canadian
non-capital
losses
     
7,349,482
       
7,935,309
  
Total deferred tax assets
     
7,492,655
       
8,025,872
  
  
 
 
     
 
 
  
Valuation allowance
     
(2,429,852
) 
     
(4,077,932
) 
  
 
 
     
 
 
  
Net deferred tax liabilities
   
$
(4,527,869
) 
   
$
(6,205,620
) 
  
 
 
     
 
 
  
 
The Canadian
non-capital
losses expire between 2032 and 2042. The valuation allowance is associated with the Canadian
non-capital
losses.
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. However, certain of our consolidated subsidiaries are taxable REIT subsidiaries, which are subject to federal, state and foreign income taxes. 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 generally subject to income taxes under the laws of Canada.
 
The following is a summary of the Company’s income tax expense (benefit) for the years ended December 31, 2022, 2021, and 2020:
 
    
For the year ended December 31, 2022
  
    
Federal
    
State
    
Canadian
    
Total
  
Current
   
$
170,874
    
$
27,020
    
$
320,639
    
$
518,533
  
Deferreds
     
(499,077
) 
    
(76,050
) 
    
(498,191
) 
  
$
(1,073,318
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
$
(328,203
) 
  
$
(49,030
) 
  
$
(177,552
) 
  
$
(554,785
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
 
    
For the year ended December 31, 2021
  
    
Federal
    
State
    
Canadian
    
Total
  
Current
   
$
182,034
    
$
32,559
    
$
—  
    
$
214,593
  
Deferreds
     
(1,750,248
) 
    
(266,704
) 
    
(8,916
) 
    
(2,025,868
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
$
(1,568,214
) 
  
$
(234,145
) 
  
$
(8,916
) 
  
$
(1,811,275
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
 
    
For the year ended December 31, 2020
  
    
Federal
    
State
    
Canadian
    
Total
  
Current
   
$
30,713
    
$
69,760
    
$
—  
    
$
100,473
  
Deferreds
     
(3,071,502
) 
    
(915,804
) 
    
(1,939,425
) 
  
$
(5,926,731
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
$
(3,040,789
) 
  
$
(846,044
) 
  
$
(1,939,425
) 
  
$
(5,826,258
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Income tax expense (benefit) is reconciled to the hypothetical amounts computed at the U.S. federal statutory income tax rate for the years ended December 31, 2022, 2021, and 2020:
 
    
Year Ended

December 31, 2022
    
Rate
  
Expected tax at statutory rate
   
$
4,434,080
      
21.0
% 
Non-taxable
REIT (income) loss
     
(4,610,750
) 
    
-21.8
% 
State and local income tax expense - net of federal benefit
     
(38,734
) 
    
-0.2
% 
Foreign income taxed at different rates
     
47,180
      
0.2
% 
Change in valuation allowance
     
(416,953
) 
    
-2.0
% 
Other
     
30,392
      
0.1
% 
  
 
 
    
 
 
  
Total income tax expense (benefit)
   
$
(554,785
) 
  
 
-2.6
% 
  
 
 
    
 
 
  
 
    
Year Ended

December 31, 2021
    
Rate
  
Expected tax at statutory rate
   
$
(4,489,427
) 
    
21.0
% 
Non-taxable
REIT (income) loss
     
2,655,349
      
-12.4
% 
State and local income tax expense - net of federal benefit
     
(185,137
) 
    
0.9
% 
Foreign income taxed at different rates
     
(69,318
) 
    
0.3
% 
Change in valuation allowance
     
400,146
      
-1.9
% 
Other
     
(122,888
) 
    
0.6
% 
  
 
 
    
 
 
  
Total income tax expense (benefit)
   
$
(1,811,275
) 
  
 
8.5
% 
  
 
 
    
 
 
  
 
    
Year Ended

December 31, 2020
    
Rate
  
Expected tax at statutory rate
   
$
(11,976,943
) 
    
21.0
% 
Non-taxable
REIT (income) loss
     
8,553,281
      
-15.0
% 
State and local income tax expense - net of federal benefit
     
(788,915
) 
    
1.4
% 
Foreign income taxed at different rates
     
47,180
      
-0.1
% 
Change in valuation allowance
     
(1,939,425
) 
    
3.4
% 
Other
     
278,564
      
-0.5
% 
  
 
 
    
 
 
  
Total income tax expense (benefit)
   
$
(5,826,258
) 
  
 
10.2
% 
  
 
 
    
 
 
  
The major sources of temporary differences that give rise to the deferred tax effects are shown below:
 
    
December 31,
2022
    
December 31,
2021
  
Deferred tax liabilities:
     
Intangible contract assets
     
(30,184
) 
    
(605,473
) 
Canadian real estate
     
(10,123,376
) 
    
(10,166,453
) 
  
 
 
    
 
 
  
Total deferred tax liability
     
(10,153,560
) 
    
(10,771,926
) 
  
 
 
    
 
 
  
Deferred tax assets:
     
Other
     
90,563
      
—  
  
Canadian
non-capital
losses
     
7,935,309
      
6,717,033
  
  
 
 
    
 
 
  
Total deferred tax assets
     
8,025,872
      
6,717,033
  
  
 
 
    
 
 
  
Valuation allowance
     
(4,077,932
) 
    
(3,664,367
) 
  
 
 
    
 
 
  
Net deferred tax liabilities
   
$
(6,205,620
) 
  
$
(7,719,260
) 
  
 
 
    
 
 
  
The Canadian
non-capital
losses expire between 2032 and 2042. The valuation allowance is associated with the Canadian
non-capital
losses.