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Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Taxes Taxes
We believe that we have met all requirements for qualification as a REIT for federal income tax purposes. To qualify as a REIT, the company must distribute at least 90% of its annual REIT taxable income and meet certain other requirements that relate to, among other things, the assets it holds, the income it generates, and the composition of its stockholders. Many requirements for qualification as a REIT are complex and require analysis of particular facts and circumstances. Often there is only limited judicial or administrative interpretive guidance and as such there can be no assurance that the Internal Revenue Service or courts would agree with our various tax positions. If we were to fail to meet all the requirements for qualification as a REIT and the requirements for statutory relief, we would be subject to federal corporate income tax on our taxable income and we would not be able to elect to be taxed as a REIT for four years thereafter. Such an outcome could have a material adverse impact on our consolidated financial statements.
For the three months ended March 31, 2024 and 2023, we recognized a provision for income taxes of $1 million and benefit from income taxes of $1 million, respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at March 31, 2024 and 2023.
Table 23.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate
March 31, 2024March 31, 2023
Federal statutory rate21.0 %21.0 %
State taxes, net of Federal tax effect, as applicable0.4 %(6.3)%
Differences in taxable income (loss) from GAAP income0.6 %(14.3)%
Change in valuation allowance— %— %
REIT GAAP income or loss not subject to federal income tax(20.3)%(32.5)%
Effective Tax Rate1.7 %(32.1)%
We assessed our tax positions for all open tax years (i.e., Federal, 2020 to 2024, and State, 2019 to 2024) at March 31, 2024 and December 31, 2023, and concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits.