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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Taxes | NOTE 19 - INCOME TAXES Our deferred tax asset of $4.0 million and $2.2 million at December 31, 2012 and 2011, respectively, relates primarily to the taxable loss of our TRSs. Our earnings (losses), other than in our TRSs, are not generally subject to federal corporate and state income taxes due to our REIT election. At December 31, 2012 and 2011, we estimated net operating loss carry forwards of our TRSs for federal and state income tax reporting purposes of $11.7 million and $6.2 million, respectively. No valuation allowances have been recorded against our deferred tax assets, as we believe the benefit is fully realizable based upon projected future taxable income. We had no unrecognized tax benefits at December 31, 2012 or in the three year period then ended. We expect no significant changes in unrecognized tax benefits due to changes in tax positions within one year of December 31, 2012. We have no material interest or penalties relating to income taxes recognized in the consolidated statements of operations for 2012, 2011 or 2010 or in the consolidated balance sheets as of December 31, 2012 or 2011. Current tax liabilities of $0.2 million and $0.1 million at December 31, 2012 and 2011, respectively, are included in accrued expenses in the accompanying consolidated balance sheets and relate to state and local tax expense of the Operating Partnership. The components of income tax expense (benefit) for 2012, 2011 and 2010 are (in thousands):
|  | Summit Hotel Properties, Inc. |  |  | Summit Hotel Properties, LLC (Predecessor) |
|  | 2012 |  |  | Period 2/14/11 through 12/31/11 |  |  | Period 1/1/11 through 2/13/11 |  |  | 2010 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
State and local |  |  | 512 |  |  |  | (129 | ) |  |  | 339 |  |  |  | 202 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal (34%) |  |  | (1,531 | ) |  |  | (1,867 | ) |  |  | - |  |  |  | - |
State and local (6%) |  |  | (270 | ) |  |  | (329 | ) |  |  | - |  |  |  | - |
|  | $ | (1,289 | ) |  | $ | (2,325 | ) |  | $ | 339 |  |  | $ | 202 |
Our Predecessor was a limited liability company and all federal taxable income flowed through and was taxable to its members. For federal income tax purposes, the cash distributions paid to our common and preferred shareholders may be characterized as ordinary income, return of capital (generally non-taxable), or capital gains. A summary of the average taxable nature of our common and Series A Cumulative Redeemable Preferred dividends for 2012 and 2011 follows:
|  | Common Dividends |  | Preferred Dividends
|  | 2012 |  | 2011 |  | 2012 |  | 2011
Total dividends per share |  | $ | 0.45 |  | $ | 0.28 |  | $ | 2.31 |  | $ | 0.21
Ordinary income |  |  | 44.82 | % |  |  | 33.89 | % |  |  | 100.00 | % |  |  | 100.00 | %
Capital gain |  |  | 27.04 | % |  |  | 0.00 | % |  |  | 0.00 | % |  |  | 0.00 | %
Return of capital |  |  | 28.14 | % |  |  | 66.11 | % |  |  | 0.00 | % |  |  | 0.00 | %
|  |  | 100.00 | % |  |  | 100.00 | % |  |  | 100.00 | % |  |  | 100.00 | %

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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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: 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=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 Reference 7: 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 8: 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 + Details
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