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Income taxes (Notes)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income taxes INCOME TAXES
We have elected to be taxed as a REIT, under the Internal Revenue Code of 1986, as amended, (the “Code”). We believe we have qualified and continue to qualify as a REIT. Under the Code, a REIT that distributes at least 90% of its REIT taxable income to its shareholders annually and meets certain other conditions is not subject to federal income taxes, but could be subject to certain state, local, and foreign taxes. We distribute 100% of our taxable income annually; therefore, a provision for federal income taxes is not required.

We distributed all of our REIT taxable income in 2020 and 2019 and, as a result, did not incur federal income tax in those years on such income. For the year ended December 31, 2021, we expect to distribute all of our REIT taxable income and, as a result, do not expect to incur federal income tax. We expect to finalize our 2021 REIT taxable income when we file our 2021 federal income tax return in 2022.

The income tax treatment of distributions and dividends declared on our common stock and our Series D Convertible Preferred Stock for the years ended December 31, 2021, 2020, and 2019 was as follows (unaudited):

Common Stock
Series D Convertible Preferred Stock(1)
 Year Ended December 31,
 2021202020192019
Ordinary income46.3 %65.7 %62.4 %64.4 %
Return of capital— 13.2 3.2 — 
Capital gains at 25%3.8 — 2.2 2.2 
Capital gains at 20%49.9 21.1 32.2 33.4 
Total100.0 %100.0 %100.0 %100.0 %
Dividends declared$4.48 $4.24 $4.00 $1.3125 
(1)Refer to Note 15 – “Stockholders’ equity” to our consolidated financial statements for information regarding the conversion of our Series D Convertible Preferred Stock.

Beginning in 2018, the Tax Cuts and Jobs Act of 2017 added Section 199A to allow for a new tax deduction based on certain qualified business income. Section 199A provides eligible individual taxpayers a deduction of up to 20% of their qualified REIT dividends.

Our dividends declared in a given quarter are generally paid during the subsequent quarter. The taxability information presented above for our dividends paid in 2021 is based upon management’s estimate. Our federal tax return for 2021 is due on or before October 15, 2022, assuming we file for an extension of the due date. Our federal tax returns for previous tax years have not been examined by the IRS. Consequently, the taxability of distributions and dividends is subject to change.

In addition to our REIT tax returns, we file federal, state, and local tax returns for our subsidiaries. We file with jurisdictions located in the U.S., Canada, China, and other international locations and may be subject to audits, assessments, or other actions by local taxing authorities. We recognize tax benefits of uncertain tax positions only if it is more likely than not that the tax position will be sustained, based solely on its technical merits, with the taxing authority having full knowledge of all relevant information. The measurement of a tax benefit for an uncertain tax position that meets the “more likely than not” threshold is based on a cumulative probability model under which the largest amount of tax benefit recognized is the amount with a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority that has full knowledge of all relevant information.

As of December 31, 2021, there were no material unrecognized tax benefits. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months.

Interest expense and penalties, if any, are recognized in the first period during which the interest or penalties begin accruing, according to the provisions of the relevant tax law at the applicable statutory rate of interest. We did not incur any significant tax-related interest expense or penalties for the years ended December 31, 2021, 2020, and 2019.
The following reconciles net income (determined in accordance with GAAP) to taxable income as filed with the IRS for the years ended December 31, 2020 and 2019 (in thousands and unaudited):
Year Ended December 31,
20202019
Net income$827,171 $404,047 
Net income attributable to noncontrolling interests(56,212)(40,882)
Book/tax differences:
Rental revenue recognition(165,091)(132,979)
Depreciation and amortization220,046 177,627 
Share-based compensation30,695 30,756 
Interest expense(21,174)(13,687)
Sales of property(69,048)66,717 
Impairments40,398 12,334 
Non-real estate investment income(377,820)(96,353)
Other22,315 7,565 
Taxable income before dividend deduction451,280 415,145 
Dividend deduction necessary to eliminate taxable income(1)
(451,280)(415,145)
Estimated income subject to federal income tax$— $— 
(1)Total common stock and preferred stock dividend distributions paid were approximately $533.0 million and $451.2 million during the years ended December 31, 2020 and 2019, respectively.