13. Income Taxes

The components of the income tax benefit for the three and nine months ended September 30, 2015 and 2014 are as follows:

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Current:
Federal	$	67,708		$	9,285		$	67,708		$	32,285
State		311,468			93,890			419,424			209,379
		379,176			103,175			487,132			241,664
Deferred:
Federal		(774,207	)		(659,931	)		(424,111	)		(917,792	)
State		(118,474	)		(165,414	)		(59,766	)		(217,578	)
		(892,681	)		(825,345	)		(483,877	)		(1,135,370	)
	$	(513,505	)	$	(722,170	)	$	3,255		$	(893,706	)

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

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Statutory federal income tax expense	$	1,536,869		$	(340,744	)	$	2,553,376		$	877,590
Effect of non-taxable REIT income		(2,243,368	)		(309,902	)		(2,909,779	)		(1,763,096	)
State income tax benefit		192,994			(71,524	)		359,658			(8,200	)
	$	(513,505	)	$	(722,170	)	$	3,255		$	(893,706	)

As of September 30, 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 $3.1 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 September 30, 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.