Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

The (benefit) expense for income taxes consists of:

	Years Ended December 31,
	2021		2020		2019
Current:
Federal	$	(1,408)	$	—	$	—
State	341		(147)		—
Deferred and Other:
Federal	—		—		—
State	—		—		—
Total tax (benefit) expense	$	(1,067)	$	(147)	$	—

The reconciliation between our effective tax rate on income from operations and the statutory rate is as follows:

	Years Ended December 31,
	2021			2020			2019
Income tax (benefit) expense at federal statutory rate	$	285		$	2,335		$	(4,566)
State and local income taxes net of federal tax (benefit) expense	341			(147)			—
AMT refund	(1,434)			—			—
Permanent tax differences	(1,837)			(1,846)			(2,499)
Temporary tax differences
Installment note on land sale	—			—			—
Allowance for losses on note receivables	(485)			(77)			(246)
Deferred gains	(4,893)			(878)			(1,920)
Basis differences on fixed assets	(721)			1,307			—
Other basis/timing differences	(2,729)			2,296			3,172
Generation (use) on net operating loss carryforwards	10,406			(3,137)			6,059
Reported tax (benefit) expense	$	(1,067)		$	(147)		$	—
Effective tax rate	4.7		%	—		%	0.7		%

We are subject to taxation in the United States and various states and foreign jurisdictions.  As of December 31, 2021, our tax years for 2021, 2020, and 2019 are subject to examination by the tax authorities.  With few exceptions, as of December 31, 2021, we are no longer subject to U.S federal, state, local, or foreign examinations by tax authorities for the years before 2016.

Components of the Net Deferred Tax Asset or Liability

	December 31, 2021
	2021		2020
Deferred tax assets:
Allowance for losses on notes	$	2,189	$	2,674
Basis difference in fixed assets	705		1,426
Deferred gain	275		5,168
Foreign currency translations	1,088		3,818
Net operating loss carryforward	25,993		15,234
Total deferred tax assets	30,250		28,320
Less: valuation allowance	(30,250)		(28,320)
Total net deferred tax assets	$	—	$	—

We have state net operating losses in many of the various states in which we operate.

We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. At December 31, 2021, we had a net deferred tax asset due to tax deductions available to us in future years. However, as we could not determine that it was more likely than not that we would realize the benefit of the deferred tax asset, we established a 100% valuation allowance.