Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of deferred tax assets (liabilities)

The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2019		2018
Deferred Tax Assets:
Net operating loss carryforward	$	2,875	$	3,711
Other reserves		1,090		1,052
State taxes and other		3,322		3,168
Depreciation		492		476
Total deferred tax assets		7,779		8,407
Deferred Tax Liabilities:
Amortization		(38)		(53)
Deferred revenue		(284)		(213)
Other		(42)		(38)
Total deferred tax liabilities		(364)		(304)
Deferred tax assets, net	$	7,415	$	8,103

Schedule of income tax benefit (provision), net

The Company’s income tax benefit (provision), net was included in the consolidated statements of operations as follows (in thousands):

	2019		2018		2017
Current:
Federal	$	790	$	4	$	(298)
State		49		(639)		(1,162)
Current income tax benefit (provision), net		839		(635)		(1,460)
Deferred:
Federal		(1,112)		(365)		(5,591)
State		424		(767)		(442)
Change in valuation allowance		—		—		15,268
Deferred income tax (provision) benefit, net		(688)		(1,132)		9,235
Income tax benefit (provision), net	$	151	$	(1,767)	$	7,775

Schedule of effective income tax rate reconciliation

The differences between the income tax benefit (provision) calculated at the statutory U.S. federal income tax rate of 21% (35% prior to 2018) and the actual income tax benefit (provision), net recorded for continuing operations were as follows (in thousands):

	2019		2018		2017
Expected federal tax expense at statutory rate	$	(29,955)	$	(54,773)	$	(46,998)
Tax impact of REIT election		29,810		54,779		43,237
Expected tax (provision) benefit of TRS		(145)		6		(3,761)
State income tax benefit (provision), net of federal benefit		335		(606)		(318)
Change in valuation allowance		—		—		14,340
Other permanent items		562		(1,167)		(381)
AMT credit (refund) receivable		(601)		—		1,421
Effect of rate change		—		—		(3,526)
Income tax benefit (provision), net	$	151	$	(1,767)	$	7,775

Schedule of characterization of distributions

Characterization of Distributions

For income tax purposes, distributions paid consist of ordinary income, capital gains, return of capital or a combination thereof. For the years ended December 31, 2019, 2018 and 2017, distributions paid per share were characterized as follows (unaudited):

	2019 (1)				2018 (1)				2017
	Amount		%		Amount		%		Amount		%
Common Stock:
Ordinary income	$	0.606	81.84	%	$	0.634	91.89	%	$	0.554	75.95	%
Capital gain		0.134	18.16			0.056	8.11			0.176	24.05
Return of capital		—	—			—	—			—	—
Total	$	0.740	100	%	$	0.690	100	%	$	0.730	100	%
Preferred Stock — Series E
Ordinary income	$	1.422	81.84	%	$	1.597	91.89	%	$	1.320	75.95	%
Capital gain		0.316	18.16			0.141	8.11			0.418	24.05
Return of capital		—	—			—	—			—	—
Total	$	1.738	100	%	$	1.738	100	%	$	1.738	100	%
Preferred Stock — Series F
Ordinary income	$	1.320	81.84	%	$	1.482	91.89	%	$	1.225	75.95	%
Capital gain		0.293	18.16			0.131	8.11			0.388	24.05
Return of capital		—	—			—	—			—	—
Total	$	1.613	100	%	$	1.613	100	%	$	1.613	100	%

(1) Ordinary income in both 2019 and 2018 qualifies for Section 199A treatment per the TCJA.