NOTE 10. INCOME TAXES

We have elected to be taxed as a REIT and to comply with the provisions of the Code with respect thereto. Accordingly, we will not be subject to federal or state income taxes to the extent that our distributions to stockholders satisfy the REIT requirements and certain asset, income and stock ownership tests are met. We believe we currently meet all REIT requirements regarding the ownership of our common stock and the distribution of our taxable net income. Therefore, we believe that we continue to qualify as a REIT under the provisions of the Code.

Income tax expense (benefit) for the years ended December 31, 2019, 2018, and 2017 was zero. None of the components of income tax expense are significant on a separately stated basis.

At December 31, 2019 and December 31, 2018, there were no significant deferred tax assets and deferred tax liabilities.

The tables below present tax information regarding our dividend distributions for the fiscal year ended December 31, 2019:

8.625% Series A Cumulative Preferred Stock (CUSIP 03747 20 0)


			2019
			Total				2019
			Distribution		2019		Return		Short-Term
Declaration	Record	Payable	Per		Ordinary		of		Capital		Carry-Over
Date	Date	Date	Share		Income		Capital		Gains		to 2020
11/06/18	12/31/18	01/15/19	$	0.539063	$	0.539063	$	—	$	—	$	—
02/28/19	03/29/19	04/15/19		0.539063		0.539063		—		—		—
05/07/19	06/28/19	07/15/19		0.539063		0.539063		—		—		—
08/06/19	09/30/19	10/15/19		0.539063		0.539063		—		—		—
11/06/19	12/31/19	01/15/20		0.539063		—		—		—		0.539063
		Total	$	2.695315	$	2.156252	$	—	$	—	$	0.539063

6.25% Series B Cumulative Convertible Preferred Stock (CUSIP 03747 30 9)


			2019
			Total				2019
			Distribution		2019		Return		Short-Term
Declaration	Record	Payable	Per		Ordinary		of		Capital		Carry-Over
Date	Date	Date	Share(1)		Income		Capital		Gains		to 2020
11/06/18	12/31/18	01/15/19	$	0.395857	$	0.395857	$	—	$	—	$	—
02/28/19	03/29/19	04/15/19		0.396315		0.396315		—		—		—
05/07/19	06/28/19	07/15/19		0.394509		0.394509		—		—		—
08/06/19	09/30/19	10/15/19		0.394301		0.394301		—		—		—
11/06/19	12/31/19	01/15/20		0.390625		—		—		—		0.390625
		Total	$	1.971607	$	1.580982	$	—	$	—	$	0.390625

(1)

The Series B Preferred Stock is convertible into shares of our common stock. The conversion rate is adjusted per a stated formula when distributions are made to our common stockholders. The value of any conversion rate increase is a deemed distribution for tax purposes and is taxable to holders of our Series B Preferred Stock to the extent supported by earnings and profits and is included in the table above. See Forms 8937 on our Company website for additional details.

7.625% Series C Cumulative Redeemable Preferred Stock (CUSIP 03747 40 8)


			2019
			Total				2019
			Distribution		2019		Return		Short-Term
Declaration	Record	Payable	Per		Ordinary		of		Capital		Carry-Over
Date	Date	Date	Share		Income		Capital		Gains		to 2020
11/06/18	12/31/18	01/15/19	$	0.476563	$	0.476563	$	—	$	—	$	—
02/28/19	03/29/19	04/15/19		0.476563		0.476563		—		—		—
05/07/19	06/28/19	07/15/19		0.476563		0.476563		—		—		—
08/06/19	09/30/19	10/15/19		0.476563		0.476563		—		—		—
11/06/19	12/31/19	01/15/20		0.476563		—		—		—		0.476563
		Total	$	2.382815	$	1.906252	$	—	$	—	$	0.476563

Common Stock (CUSIP 03747 10 1)


			2019
			Total				2019
			Distribution		2019		Return		Short-Term
Declaration	Record	Payable	Per		Ordinary		of		Capital		Carry-Over
Date	Date	Date	Share		Income		Capital		Gains		to 2020
12/14/18	12/31/18	01/29/19	$	0.130000	$	0.091521	$	0.038479	$	—	$	—
03/14/19	03/29/19	04/29/19		0.130000		0.091521		0.038479		—		—
06/13/19	06/28/19	07/29/19		0.110000		0.077441		0.032559		—		—
09/17/19	09/30/19	10/29/19		0.100000		0.070401		0.029599		—		—
12/17/19	12/31/19	01/29/20		0.090000		—		—		—		0.090000
		Total	$	0.560000	$	0.330884	$	0.139116	$	—	$	0.090000