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Income Taxes
 12 Months Ended
Dec. 31, 2021
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,
202120202019
Current - Federal$2,759 $— $420 
 State40 79 541 
 Foreign— 7 49 
2,799 86 1,010 
Deferred - Federal5,190 (13,766)80 
 State(6,159)(4,866)132 
 Foreign— (32,819)20,806 
Change in valuation allowance1,437 24,913 — 
468 (26,538)21,018 
Income tax provision (benefit)$3,267 $(26,452)$22,028 

A reconciliation of the statutory federal tax provision to our income tax provision is as follows (in thousands):
Year Ended December 31,
202120202019
Statutory federal tax (benefit) provision (1)
$(40,337)$(88,733)$43,313 
Tax impact of REIT election45,946 37,394 (14,125)
State income tax (benefit) provision, net of federal tax benefit(6,119)(3,782)532 
Foreign income tax expense (benefit)— 3,618 (6,998)
Change in valuation allowance1,437 24,913 — 
Permanent differences2,561 — — 
Other(221)138 (694)
Income tax provision (benefit)$3,267 $(26,452)$22,028 
_____________________________
(1)Beginning January 1, 2018, the U.S. federal income tax rate decreased from 35% to 21%.
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):
20212020
Federal
Net operating loss carryforwards$7,141 $13,960 
Deferred income2,892 2,799 
Other408 24 
Depreciation and amortization(5,835)(7,028)
Less: Valuation allowance(4,678)(9,166)
Federal - Deferred tax (liabilities) assets, net$(72)$589 
State
Net operating loss carryforwards$11,312 $5,639 
Deferred income729 712 
Alternative minimum tax credit carryforwards80 80 
Other118 7 
Depreciation and amortization(1,471)(1,787)
Less: Valuation allowance(10,238)(4,313)
State - Deferred tax assets, net$530 $338 
Foreign (USVI)
Depreciation and amortization$— $12,134 
Land basis recorded in purchase accounting— (2,617)
Less: Valuation allowance— (12,134)
Foreign - Deferred tax liabilities, net$— $(2,617)

As of December 31, 2021, we had deferred tax assets of $18.5 million consisting of federal and state net operating loss carryforwards. The state loss carryforwards generally expire in 2023 through 2041 if not utilized by then; however, for certain states some loss carryforwards do not expire. The federal loss carryforwards do not expire.

We analyze our deferred tax assets for each jurisdiction and record a valuation allowance when we deem it more likely than not that future results will not generate sufficient taxable income to realize the deferred tax assets. As of December 31, 2021, we have a valuation allowance of $14.9 million on our deferred tax assets as we can no longer be assured that we will be able to realize most of these assets due to uncertainties regarding how long the COVID-19 pandemic will last or what the long-term impact will be on our hotels' operations.