Income Tax Provision

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Provision

11. Income Tax Provision

The Partnership recognizes current income tax expense for federal, state, and local income taxes incurred by the Greens Hold Co, which owned The 50/50 MF Property and also owns certain property loans. The following table summarizes income tax expense (benefit) for the years ended December 31, 2023 and 2022:

	For the Years Ended December 31,
	2023			2022
Current income tax expense (benefit)	$	11,228		$	(6,138	)
Deferred income tax expense (benefit)		(362	)		(45,056	)
Total income tax expense (benefit)	$	10,866		$	(51,194	)

The Partnership’s income tax expense fluctuates from period to period based on the timing of the taxable income in the Greens Hold Co and the impact of deferred income taxes. Deferred income tax expense is generally a function of the period’s temporary differences (i.e. depreciation, amortization of finance costs, etc.). The deferred tax assets and liabilities are valued based on enacted tax rates. The Greens Hold Co had net deferred tax assets of approximately $667,000 and $666,000 as of December 31, 2023 and 2022, respectively. Substantially all of the deferred tax assets and liabilities relate to The 50/50 MF Property and will be realized along with the deferred gain on sale (Note 14). These amounts are reported within “Other assets” on the Partnership’s consolidated balance sheets. The Partnership evaluated whether it is more likely than not that its deferred income tax assets will be realizable and recorded no valuation allowance as of December 31, 2023 and 2022.

For the years ended December 31, 2023 and 2022, income taxes computed by applying the U.S. federal statutory rates to income from continuing operations before income taxes for the Greens Hold Co differ from the provision for income taxes due to state income taxes (net of the effect on federal income tax).

The Partnership accrues interest and penalties associated with uncertain tax positions as part of income tax expense. There were no material uncertain tax positions, accrued interest or penalties as of December 31, 2023 and 2022.

The Partnership files U.S. federal and state tax returns. The Partnership’s returns for years 2020 through 2022 remain subject to examination by the Internal Revenue Service.