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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We have elected to be treated as a REIT under the provisions of the Internal Revenue Code, which requires that we distribute at least 90% of our taxable income annually to our stockholders and comply with certain other requirements. In addition to paying federal and state taxes on any retained income, we may be subject to taxes on “built in gains” on sales of certain assets. Our taxable REIT subsidiaries are subject to federal, state, local and/or foreign income taxes. Our provision (benefit) for income taxes consists of the following (in thousands):
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Current - Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 770 |  |  | 269 |  |  | 257 |
Foreign | 515 |  |  | 208 |  |  | 70 |
| 1,285 |  |  | 477 |  |  | 327 |
Deferred - Federal | 8,249 |  |  | 3,933 |  |  | (1,626 | )
State | 2,315 |  |  | 1,105 |  |  | (167 | )
Foreign | (274 | ) |  | 121 |  |  | 353 |
| 10,290 |  |  | 5,159 |  |  | (1,440 | )
Income tax provision (benefit) from continuing operations | $ | 11,575 |  |  | $ | 5,636 |  |  | $ | (1,113 | )
Income tax provision from discontinued operations | $ | — |  |  | $ | — |  |  | $ | 1,097 |
A reconciliation of the statutory federal tax provision to our income tax provision (benefit) is as follows (in thousands):
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Statutory federal tax provision (35)% | $ | 34,272 |  |  | $ | 59,155 |  |  | $ | 7,950 |
Tax impact of REIT election | (21,544 | ) |  | (52,937 | ) |  | (8,641 | )
State income tax provision, net of federal tax benefit | 1,745 |  |  | 893 |  |  | 58 |
Foreign income tax benefit | (2,266 | ) |  | (1,603 | ) |  | (552 | )
Foreign tax rate adjustment | — |  |  | — |  |  | — |
Other | (632 | ) |  | 128 |  |  | 72 |
Income tax provision (benefit) from continuing operations | $ | 11,575 |  |  | $ | 5,636 |  |  | $ | (1,113 | )
We are required to pay franchise taxes in certain jurisdictions. We recorded approximately $0.4 million of franchise taxes during each of the years ended December 31, 2015, 2014 and 2013, which are classified as corporate expenses in the accompanying consolidated statements of operations. Deferred income taxes are recognized for temporary differences between the financial reporting bases of assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards based on enacted tax rates expected to be in effect when such amounts are paid. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realizable based on consideration of available evidence, including future reversals of existing taxable temporary differences, projected future taxable income and tax planning strategies. Deferred tax assets are included in prepaid and other assets and deferred tax liabilities are included in accounts payable and accrued expenses on the accompanying consolidated balance sheets. The total deferred tax assets and liabilities are as follows (in thousands):
| 2015 |  | 2014
Deferred income related to key money | $ | 8,844 |  |  | $ | 8,636 |
Net operating loss carryforwards | 25,210 |  |  | 31,178 |
Alternative minimum tax credit carryforwards | 59 |  |  | 72 |
Other | 335 |  |  | 601 |
Deferred tax assets | 34,448 |  |  | 40,487 |
Less: Valuation allowance | (400 | ) |  | — |
Subtotal | 34,048 |  |  | 40,487 |
Land basis difference recorded in purchase accounting | (4,260 | ) |  | (4,260 | )
Depreciation and amortization | (16,784 | ) |  | (12,947 | )
Deferred tax liabilities | (21,044 | ) |  | (17,207 | )
Deferred tax asset, net | $ | 13,004 |  |  | $ | 23,280 |
As of December 31, 2015, we had deferred tax assets of $25.2 million consisting of federal and state net operating loss carryforwards. The federal loss carryforwards of $21.5 million generally expire in 2028 through 2034 if not utilized by then. We believe that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax asset related to federal loss carryforwards prior to their expiration and have determined that no valuation allowance is required. The state loss carryforwards of $3.7 million generally expire in 2020 through 2034 if not utilized by then. The Company analyzes state loss carryforwards on a state by state basis and records a valuation allowance when we deem it more likely than not that future results will not generate sufficient taxable income in the respective state to realize the deferred tax asset prior to the expiration of the loss carryforwards. During the year ended December 31, 2015, we recorded a $0.4 million valuation allowance on the deferred tax asset related to the Illinois state loss carryforward. The remaining deferred tax assets of $9.2 million are expected to be recovered against reversing existing taxable temporary differences. The Frenchman's Reef & Morning Star Marriott Beach Resort is owned by a subsidiary that has elected to be treated as a TRS, and is subject to U.S. Virgin Islands ("USVI") income taxes. We were party to a tax agreement with the USVI that reduced the income tax rate to approximately 7%. This agreement expired on February 14, 2015, at which time the income tax rate increased to 37.4%. In October 2015, we were granted a 15-year extension of the tax agreement, which is retroactive to the expiration date of the prior agreement. Accordingly, the income tax expense for 2015, as well as deferred tax assets and liabilities, reflect the lower rate.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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