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Income Taxes
 12 Months Ended
Dec. 31, 2024
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. 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 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
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 domestic and international components of income (loss) before income taxes are presented for the years ended December 31, 2024, 2023, and 2022 (in thousands):
 
    
For the year ended
  
    
2024
     
2023
     
2022
  
Domestic
    $ (3,917 )     $ 6,993      $ 20,546  
Foreign
      (486 )       2,058        568  
  
 
 
     
 
 
     
 
 
  
Income (loss) before income taxes
    $ (4,403 )     $ 9,051      $ 21,114  
  
 
 
     
 
 
     
 
 
  
The following is a summary of our income tax expense (benefit) for the years ended December 31, 2024, 2023, and 2022 (in thousands):
 
    
For the year ended December 31, 2024
  
    
Federal
     
State
     
Canadian
     
Total
  
Current
    $ 18      $ 41      $ 580      $ 639  
Deferred
      258        4        583        845  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 276      $ 45      $ 1,163      $ 1,484  
  
 
 
     
 
 
     
 
 
     
 
 
  
    
For the year ended December 31, 2023
  
    
Federal
     
State
     
Canadian
     
Total
  
Current
    $ 191      $ 33      $ 480      $ 704  
Deferred
      (10 )       (2 )       (3,288 )       (3,300 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 181      $ 31      $ (2,808 )     $ (2,596 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
    
For the year ended December 31, 2022
  
    
Federal
     
State
     
Canadian
     
Total
  
Current
    $ 171      $ 27      $ 321      $ 519  
Deferred
      (499 )       (76 )       (499 )       (1,074 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ (328 )     $ (49 )     $ (178 )     $ (555 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
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, 2024, 2023, and 2022 (in thousands):
 
    
Year Ended
December 31, 2024
     
Rate
  
Expected tax (benefit) at statutory rate
    $ (925 )       21.0 % 
Non-taxable
REIT (income) loss
      1,134        -25.7 % 
State and local income tax expense - net of federal benefit
      36        -0.8 % 
Foreign income taxed at different rates
      (12 )       0.3 % 
Change in valuation allowance
      1,223        -27.8 % 
Other
      28        -0.7 % 
  
 
 
     
 
 
  
Total income tax expense (benefit)
   
$
1,484
 
   
 
-33.7
% 
  
 
 
     
 
 
  
 
 
    
Year Ended
December 31, 2023
     
Rate
  
Expected tax at statutory rate
    $ 1,901        21.0 % 
Non-taxable
REIT (income) loss
      (1,243 )       -13.7 % 
State and local income tax expense—net of federal benefit
      25        0.3 % 
Foreign income taxed at different rates
      131        1.5 % 
Change in valuation allowance
      (3,410 )       -37.7 % 
  
 
 
     
 
 
  
Total income tax expense (benefit)
   
$
(2,596
) 
   
 
-28.7
% 
  
 
 
     
 
 
  
    
Year Ended
December 31, 2022
     
Rate
  
Expected tax at statutory rate
    $ 4,434        21.0 % 
Non-taxable
REIT (income) loss
      (4,611 )       -21.8 % 
State and local income tax expense—net of federal benefit
      (39 )       -0.2 % 
Foreign income taxed at different rates
      48        0.2 % 
Change in valuation allowance
      (417 )       -2.0 % 
Other
      30        0.1 % 
  
 
 
     
 
 
  
Total income tax expense (benefit)
   
$
(555
) 
   
 
-2.6
% 
  
 
 
     
 
 
  
The major sources of temporary differences that give rise to the deferred tax effects are shown below (in thousands):
 
    
December 31,
2024
     
December 31,
2023
  
Deferred tax liabilities:
      
Intangible contract assets
    $ (6 )     $ (18 ) 
Canadian real estate
      (9,163 )       (9,887 ) 
  
 
 
     
 
 
  
Total deferred tax liability
      (9,169 )       (9,905 ) 
  
 
 
     
 
 
  
Deferred tax assets:
      
Other
      1,687        1,267  
Canadian real estate and
non-capital
losses
      7,729        7,561  
  
 
 
     
 
 
  
Total deferred tax assets
      9,416        8,828  
  
 
 
     
 
 
  
Valuation allowance
      (1,891 )       (667 ) 
  
 
 
     
 
 
  
Net deferred tax liabilities
   
$
(1,644
) 
   
$
(1,744
) 
  
 
 
     
 
 
  
The Canadian
non-capital
losses expire between 2032 and 2044. As of December 31, 2024 and December 31, 2023, the Company had Canadian
non-capital
loss carry forwards of approximately $20.8 million and $24.9 million, respectively. As of December 31, 2024 and 2023, we had a valuation allowance of approximately $1.9 million and $0.7 million, respectively, related to
non-capital
loss carry-forwards, non deductible interest expense carry-forwards, and basis differences at certain of our Canadian properties.
As of December 31, 2024 and 2023, we had no interest or penalties related to uncertain tax positions. The tax years 2020-2023 remain open to examination by the major taxing jurisdictions to which we are subject.