12. Income Taxes

The components of the income tax benefit for the three months ended March 31, 2015 and 2014 are as follows:


	*Three months ended* *March 31, 2015*			*Three months ended* *March 31, 2014*
	*(unaudited)*			*(unaudited)*
Current:
Federal	$	—		$	—
State		57,679			23,000

		57,679			23,000

Deferred:
Federal		(425,159	)		(732,189	)
State		(71,295	)		(26,130	)

		(496,454	)		(758,319	)

	$	(438,775	)	$	(735,319	)

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


	*Three months ended* *March 31, 2015*			*Three months ended* *March 31, 2014*
	*(unaudited)*			*(unaudited)*
Statutory federal income tax expense	$	93,528		$	90,778
Effect of non-taxable REIT income		(518,687	)		(822,967	)
State income tax benefit		(13,616	)		(3,130	)

	$	(438,775	)	$	(735,319	)

As of March 31, 2015 and December 31, 2014, we had a net deferred tax asset of approximately $4.0 million and $3.5 million, respectively, of which, approximately $3.2 million and $2.7 million, respectively, are due to accumulated net operating losses. These loss carryforwards will begin to expire in 2028 if not utilized by such time. As of both March 31, 2015 and December 31, 2014, approximately $0.2 million of the net deferred tax asset is attributable to our 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. We believe that it is more likely than not that the deferred tax asset will be realized and that no valuation allowance is required.