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Income Taxes | 12 Months Ended
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Dec. 31, 2023
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 and local taxes. For federal income tax purposes, the cash distributions paid to holders of our common stock and Series A Preferred Stock may be characterized as ordinary income, return of capital (generally non-taxable) or capital gains. Tax law permits certain characterization of distributions which could result in differences between cash basis and tax basis distribution amounts. The following characterizes distributions paid to holders of common stock and Series A Preferred Stock on a tax basis for the years ended December 31, 2023, 2022, and 2021:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Common Stock |  |  |  |  |
Ordinary non-qualified income | $ | 0.120000 |  |  | $ | 0.044543 |  |  | $ | — |
Qualified dividends | — |  |  | 0.045457 |  |  | — |
| $ | 0.120000 |  |  | $ | 0.090000 |  |  | $ | — |
Series A Preferred Stock |  |  |  |  |
Ordinary non-qualified income | $ | 2.062500 |  |  | $ | 1.020772 |  |  | $ | — |
Qualified dividends | — |  |  | 1.041728 |  |  | — |
Return of capital | — |  |  | — |  |  | 2.062500 |
| $ | 2.062500 |  |  | $ | 2.062500 |  |  | $ | 2.062500 |
Our provision for income taxes consists of the following (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Current - Federal | $ | (84) |  |  | $ | 901 |  |  | $ | 2,759 |
State | 1,376 |  |  | 2,487 |  |  | 40 |
| 1,292 |  |  | 3,388 |  |  | 2,799 |
Deferred - Federal | 492 |  |  | 1,090 |  |  | 5,190 |
State | (486) |  |  | 2,044 |  |  | (6,159) |
Change in valuation allowance | (981) |  |  | (3,915) |  |  | 1,437 |
| (975) |  |  | (781) |  |  | 468 |
Income tax provision | $ | 317 |  |  | $ | 2,607 |  |  | $ | 3,267 |
A reconciliation of the statutory federal tax provision to our income tax provision is as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Statutory federal tax provision (benefit) | $ | 18,226 |  |  | $ | 23,620 |  |  | $ | (40,337) |
Tax impact of REIT election | (17,281) |  |  | (21,110) |  |  | 45,946 |
State income tax provision (benefit), net of federal tax benefit | 890 |  |  | 4,531 |  |  | (6,119) |
Change in valuation allowance | (981) |  |  | (3,915) |  |  | 1,437 |
Permanent differences | (349) |  |  | (495) |  |  | 2,561 |
Other | (188) |  |  | (24) |  |  | (221) |
Income tax provision | $ | 317 |  |  | $ | 2,607 |  |  | $ | 3,267 |
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):
| 2023 |  | 2022
Federal |  |  |
Net operating loss carryforwards | $ | 2,585 |  |  | $ | 3,541 |
Deferred income | 2,049 |  |  | 3,282 |
Other | 407 |  |  | 511 |
Depreciation and amortization | (2,074) |  |  | (3,808) |
Less: Valuation allowance | (1,766) |  |  | (3,002) |
Federal - Deferred tax assets (liabilities), net | $ | 1,201 |  |  | $ | 524 |
State |  |  |
Net operating loss carryforwards | $ | 8,921 |  |  | $ | 8,499 |
Deferred income | 553 |  |  | 851 |
Alternative minimum tax credit carryforwards | 231 |  |  | 211 |
Other | 120 |  |  | 141 |
Depreciation and amortization | (559) |  |  | (987) |
Less: Valuation allowance | (8,253) |  |  | (7,999) |
State - Deferred tax assets, net | $ | 1,013 |  |  | $ | 716 |
As of December 31, 2023, we had deferred tax assets of $11.5 million consisting of federal and state net operating loss carryforwards. The state loss carryforwards generally expire in 2032 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, 2023, we have a valuation allowance of $10.0 million on our deferred tax assets, which represents the amount of deferred tax assets that we believe is more likely than not to be realized. Our assessment included, among other considerations, the future reversals of existing taxable temporary differences and future taxable income that can be reasonably projected.

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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/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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