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Income Taxes | 9 Months Ended
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Sep. 30, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes The components of the income tax (benefit) provision for the three and nine months ended September 30, 2019 and 2018 are as follows:
|  |  | Three Months Ended |  |  | Three Months Ended |  |  | Nine Months Ended |  |  | Nine Months Ended |
|  |  | September 30, 2019 |  |  | September 30, 2018 |  |  | September 30, 2019 |  |  | September 30, 2018 |
|  |  | (unaudited) |  |  | (unaudited) |  |  | (unaudited) |  |  | (unaudited) |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | $ | (33,254 | ) |  | $ | — |  |  | $ | (125,587 | ) |  | $ | — |
State |  |  |  | 41,839 |  |  |  | 24,266 |  |  |  | 112,741 |  |  |  | 131,306 |
|  |  |  | 8,585 |  |  |  | 24,266 |  |  |  | (12,846 | ) |  |  | 131,306 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  | (569,928 | ) |  |  | (612,703 | ) |  |  | 356,590 |  |  |  | 591,917 |
State |  |  |  | (132,847 | ) |  |  | (158,487 | ) |  |  | 95,579 |  |  |  | 158,822 |
|  |  |  | (702,775 | ) |  |  | (771,190 | ) |  |  | 452,169 |  |  |  | 750,739 |
|  |  | $ | (694,190 | ) |  | $ | (746,924 | ) |  | $ | 439,323 |  |  | $ | 882,045 |
A reconciliation of the statutory federal income tax provision to the Company’s income tax provision is as follows:
|  |  | Three Months Ended |  |  | Three Months Ended |  |  | Nine Months Ended |  |  | Nine Months Ended |
|  |  | September 30, 2019 |  |  | September 30, 2018 |  |  | September 30, 2019 |  |  | September 30, 2018 |
|  |  | (unaudited) |  |  | (unaudited) |  |  | (unaudited) |  |  | (unaudited) |
Statutory federal income tax provision |  |  | $ | 290,535 |  |  | $ | (573,028 | ) |  | $ | 687,986 |  |  | $ | 639,311 |
Effect of non-taxable REIT loss |  |  |  | (893,717 | ) |  |  | (39,675 | ) |  |  | (456,983 | ) |  |  | (47,394 | )
State income tax provision |  |  |  | (91,008 | ) |  |  | (134,221 | ) |  |  | 208,320 |  |  |  | 290,128 |
|  |  | $ | (694,190 | ) |  | $ | (746,924 | ) |  | $ | 439,323 |  |  | $ | 882,045 |
As of September 30, 2019 and December 31, 2018, we had a net deferred tax asset of approximately $4.7 million and $5.1 million, respectively, of which, approximately $4.1 million and $4.4 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 September 30, 2019 and December 31, 2018, the remainder of the deferred tax asset is attributable to year-to-year timing differences of approximately $0.6 million and $0.7 million, respectively, for accrued, but not deductible, employee performance awards, vacation and sick pay, bad debt allowance and depreciation. 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 September 30, 2019 and December 31, 2018, 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 September 30, 2019 and December 31, 2018, 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
| • | 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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