XML 136 R26.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes For the years ended December 31, 2019, 2018 and 2017, the Company qualified to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes at least 100% of its taxable income to stockholders and does not engage in prohibited transactions. Certain activities the Company performs may produce income that will not be qualifying income for REIT purposes. The Company has designated its TRSs to engage in these activities. The tables below reflect the taxes accrued at the TRS level and the tax attributes included in the consolidated financial statements. The income tax provision for the years ended December 31, 2019, 2018 and 2017 is comprised of the following components (dollar amounts in thousands):
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
Current income tax (benefit) expense |  |  |  |  |
Federal | $ | (65 | ) |  | $ | (273 | ) |  | $ | 1,243 |
State | 43 |  |  | (7 | ) |  | 2,130 |
Total current income tax (benefit) expense | (22 | ) |  | (280 | ) |  | 3,373 |
Deferred income tax (benefit) expense |  |  |  |  |
Federal | (245 | ) |  | (480 | ) |  | (25 | )
State | (152 | ) |  | (297 | ) |  | 7 |
Total deferred income tax benefit | (397 | ) |  | (777 | ) |  | (18 | )
Total (benefit) provision | $ | (419 | ) |  | $ | (1,057 | ) |  | $ | 3,355 |
The Company’s estimated taxable income differs from the statutory U.S. federal rate as a result of state and local taxes, non-taxable REIT income, valuation allowance and other differences. A reconciliation of the statutory income tax provision to the effective income tax provision for the years ended December 31, 2019, 2018 and 2017, respectively, are as follows (dollar amounts in thousands).
| December 31,
| 2019 |  | 2018 |  | 2017
Provision at statutory rate | $ | 36,397 |  |  | 21.0 | % |  | $ | 21,384 |  |  | 21.0 | % |  | $ | 33,367 |  |  | 35.0 | %
Non-taxable REIT income | (37,199 | ) |  | (21.5 | ) |  | (23,720 | ) |  | (23.3 | ) |  | (29,857 | ) |  | (31.3 | )
State and local tax provision (benefit) | 43 |  |  | — |  |  | (7 | ) |  | — |  |  | 2,130 |  |  | 2.2 |
Other | (620 | ) |  | (0.4 | ) |  | (2,601 | ) |  | (2.6 | ) |  | 1,511 |  |  | 1.6 |
Valuation allowance | 960 |  |  | 0.6 |  |  | 3,887 |  |  | 3.8 |  |  | (3,796 | ) |  | (4.0 | )
Total (benefit) provision | $ | (419 | ) |  | (0.3 | )% |  | $ | (1,057 | ) |  | (1.1 | )% |  | $ | 3,355 |  |  | 3.5 | %
Deferred Tax Assets and Liabilities The major sources of temporary differences included in the deferred tax assets and their deferred tax effect as of December 31, 2019 and 2018, respectively, are as follows (dollar amounts in thousands):
| December 31, 2019 |  | December 31, 2018
Deferred tax assets |  |  |
Net operating loss carryforward | $ | 3,975 |  |  | $ | 2,416 |
Capital loss carryover | 739 |  |  | 739 |
GAAP/Tax basis differences | 3,699 |  |  | 3,903 |
Total deferred tax assets (1) | 8,413 |  |  | 7,058 |
Deferred tax liabilities |  |  |
Deferred tax liabilities | 5 |  |  | 6 |
Total deferred tax liabilities (2) | 5 |  |  | 6 |
Valuation allowance (1) | (7,029 | ) |  | (6,069 | )
Total net deferred tax asset | $ | 1,379 |  |  | $ | 983 |
(1) | Included in receivables and other assets in the accompanying consolidated balance sheets.
(2) | Included in accrued expenses and other liabilities in the accompanying consolidated balance sheets.
As of December 31, 2019, the Company, through wholly owned TRSs, had incurred net operating losses in the aggregate amount of approximately $11.7 million. The Company’s carryforward net operating losses of approximately $10.8 million can be carried forward indefinitely until they are offset by future taxable income. The remaining $0.9 million of net operating losses will expire between 2036 and 2037 if they are not offset by future taxable income. Additionally, as of December 31, 2019, the Company, through one of its wholly-owned TRSs, had also incurred approximately $2.2 million in capital losses. The Company’s carryforward capital losses will expire between 2023 and 2024 if they are not offset by future capital gains. As of December 31, 2019, the Company has recorded a valuation allowance against certain deferred tax assets as management does not believe that it is more likely than not that these deferred tax assets will be realized. The change in the valuation for the current year is approximately $1.0 million. We will continue to monitor positive and negative evidence related to the utilization of the remaining deferred tax assets for which a valuation allowance continues to be provided. The Company files income tax returns with the U.S. federal government and various state and local jurisdictions. The Company’s federal, state and city income tax returns are subject to examination by the Internal Revenue Service and related tax authorities generally for three years after they were filed. The Company has assessed its tax positions for all open years and concluded that there are no material uncertainties to be recognized. Based on the Company’s evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. To the extent that the Company incurs interest and accrued penalties in connection with its tax obligations, including expenses related to the Company’s evaluation of unrecognized tax positions, such amounts will be included in income tax expense.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration