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Income Taxes
 6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

13. Income Taxes

The components of the income tax provision for the three months and six months ended June 30, 2013 and 2012 are as follows:

 

    Three months ended
June 30, 2013		     Three months ended
June 30, 2012		     Six months ended
June 30, 2013		     Six months ended
June 30, 2012		  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Current:

        

Federal

   $ 17,400      $ 18,506      $ 50,501      $ (48,967 ) 

State

     55,762        7,296        56,575        8,109   
 

 

 

    

 

 

    

 

 

    

 

 

  
    73,162        25,802        107,076        (40,858 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Deferred:

        

Federal

     880,363        792,138        1,006,149        868,764   

State

     158,293        140,206        261,648        234,815   
 

 

 

    

 

 

    

 

 

    

 

 

  
    1,038,656        932,344        1,267,797        1,103,579   
 

 

 

    

 

 

    

 

 

    

 

 

  
  $ 1,111,818      $ 958,146      $ 1,374,873      $ 1,062,721   
 

 

 

    

 

 

    

 

 

    

 

 

  

A reconciliation of the statutory federal income tax expense (benefit) to the Company’s income tax provision is as follows:

 

    Three months ended
June 30, 2013		     Three months ended
June 30, 2012		     Six months ended
June 30, 2013		     Six months ended
June 30, 2012		  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Statutory federal income tax expense (benefit)

   $ 956,375      $ (403,976 )    $ (95,147 )    $ (1,381,738 ) 

Effect of non-taxable REIT (income) loss

     (58,612 )      1,213,807        1,151,797        2,201,535   

State income tax expense (benefit)

     214,055        148,315        318,223        242,924   
 

 

 

    

 

 

    

 

 

    

 

 

  
  $ 1,111,818      $ 958,146      $ 1,374,873      $ 1,062,721   
 

 

 

    

 

 

    

 

 

    

 

 

  

As of June 30, 2013 and December 31, 2012, the Company had a net deferred tax asset of approximately $1.3 million and $2.6 million, respectively, of which, approximately $0.6 million and $1.9 million, respectively, are due to accumulated net operating losses. These loss carryforwards will begin to expire in 2024 if not utilized by such time. As of June 30, 2013 and December 31, 2012, approximately $0.3 million of the net deferred tax asset is attributable to the Company’s share of start-up expenses related to the Crowne Plaza Hollywood Beach Resort, start-up expenses related to the opening of the Sheraton Louisville Riverside and the Crowne Plaza Tampa Westshore that were not deductible in the year incurred, but are being amortized over 15 years. The remainder of the net deferred tax asset is attributable to year-to-year timing differences including accrued, but not deductible, employee performance awards, vacation and sick pay, bad debt allowance and depreciation. The Company believes that it is more likely than not that the deferred tax asset will be realized and that no valuation allowance is required.