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Income Taxes | 3 Months Ended
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Mar. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes The components of the income tax provision for the three months ended March 31, 2018 and 2017 are as follows:
|  | Three Months Ended |  |  | Three Months Ended |
|  | March 31, 2018 |  |  | March 31, 2017 |
|  | (unaudited) |  |  | (unaudited) |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | 5,485 |
State |  |  | 45,693 |  |  |  | 48,402 |
|  |  | 45,693 |  |  |  | 53,887 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 207,019 |  |  |  | 99,358 |
State |  |  | 53,243 |  |  |  | 18,692 |
|  |  | 260,262 |  |  |  | 118,050 |
|  | $ | 305,955 |  |  | $ | 171,937 |
A reconciliation of the statutory federal income tax provision (benefit) to the Company’s income tax provision is as follows:
|  | Three Months Ended |  |  | Three Months Ended |
|  | March 31, 2018 |  |  | March 31, 2017 |
|  | (unaudited) |  |  | (unaudited) |
Statutory federal income tax provision (benefit) |  | $ | 311,313 |  |  | $ | 1,046,484 |
Effect of non-taxable REIT income (loss) |  |  | (104,294 | ) |  |  | (941,641 | )
State income tax provision (benefit) |  |  | 98,936 |  |  |  | 67,094 |
|  | $ | 305,955 |  |  | $ | 171,937 |
As of March 31, 2018 and December 31, 2017, we had a net deferred tax asset of approximately $5.2 million and $5.5 million, respectively, of which, approximately $4.6 million and $4.9 million, respectively, are due to accumulated net operating losses of our TRS Lessee. These loss carryforwards will begin to expire in 2028 if not utilized by such time. As of March 31, 2018 and December 31, 2017, the remainder of the deferred tax asset is attributable to year-to-year timing differences of approximately $0.6 million and $0.5 million, respectively, for accrued, but not deductible, employee performance awards, vacation and sick pay, bad debt allowance and depreciation. At the end of the 2017 fiscal year, there was a one-time loss effect resulting from a change in the federal income tax rate, due to the recently enacted tax reform legislation, informally referred to as the Tax Cuts and Jobs Act, on the net deferred tax assets which resulted in lowering deferred tax assets in the amount of approximately $2.7 million. We record a valuation allowance to reduce deferred tax assets to an amount that we believe is more likely than not to be realized. Because of expected future taxable income of our TRS Lessee, we have not recorded a valuation allowance to reduce our net deferred tax asset as of March 31, 2018 and December 31, 2017, respectively. We regularly evaluate the likelihood that our TRS Lessee will be able to realize its deferred tax assets and the continuing need for a valuation allowance. At March 31, 2018 and December 31, 2017, we determined, based on all available positive and negative evidence, that it is more-likely-than-not that future taxable income will be available during the carryforward periods to absorb all of the consolidated federal and state net operating loss carryforward of our TRS Lessee. A number of factors played a critical role in this determination, including:
| • | a demonstrated track record of past profitability and utilization of past NOL carryforwards,
| • | reasonable forecasts of future taxable income, and
| • | anticipated changes in the lease rental payments from the TRS Lessee to subsidiaries of the Operating Partnership.

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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 Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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