Note 8. Income Taxes:

The provision (benefit) for income taxes consists of the following for the years ended December 31, 2015, 2014 and 2013:

	2015			2014			2013
Federal	$	383		$	(2,030	)	$	3,010
State and local		168			126			317
	$	551		$	(1,904	)	$	3,327

Current	$	551		$	(1,904	)	$	3,327
Deferred		(8,848	)		2,245			(30,810	)
	$	(8,297	)	$	341		$	(27,483	)

Deferred tax assets and liabilities consisted of the following as of December 31, 2015 and 2014:

	2015			2014
Deferred tax assets
Net operating loss, domestic	$	16,986		$	4,574
Stock-based and other compensation		15,579			23,105
Unrealized losses on investment		1,739			—
AMT credit carryforward		1,661			1,666
Deferred rent		1,547			462
Partnership income		1,027			—
Capital loss carryforward		344			5,383
Other, net		226			461
Total deferred tax assets		39,109			35,651
Deferred tax liabilities
Partnership income		—			(2,077	)
Deferred expenses		(1,268	)		(1,391	)
Net deferred tax assets		37,841			32,183
Valuation allowance		(344	)		(3,535	)
Net deferred tax asset	$	37,497		$	28,648

The Company evaluates the need for a valuation allowance against its deferred tax assets on a quarterly basis, based on the criteria in ASC 740, by assessing the positive and negative evidence to determine if it is more likely than not that some or all of the deferred tax assets will be realized. At December 31, 2014, the Company’s net deferred tax assets totaled $32,183 and were offset by a valuation allowance of $3,535. This valuation allowance related to capital loss carryforwards and was determined based on the Company’s conclusion that it was more likely than not that the benefits of these assets would not be realized in the future. At December 31, 2015, the Company’s net deferred tax assets totaled $37,841 and, based on its application of the guidance in ASC 740, were offset by a valuation allowance of $344. This valuation allowance related to state capital loss carryforwards. The Company will continue to assess the need to maintain a valuation allowance against its net deferred tax assets at each reporting date. Realization of the Company’s deferred tax assets will be dependent on the Company’s ability to generate future taxable income.

As of December 31, 2015, the Company has $32,513 of domestic federal net operating loss carryforwards. The Company has state and local net operating loss carryforwards of $8,626 on a tax-effected basis, excluding the federal tax benefit. The net operating losses include no tax benefit related to windfalls from the vesting of equity compensation. The state and local net operating loss carryforwards begin to expire in 2028.

As of December 31, 2015, the Company has no pre-tax capital loss carryforwards for federal tax purposes. As of December 31, 2015, the Company has pre-tax capital loss carryforwards for state tax purposes of $8,836 which will expire in 2017.

The Company’s effective tax rate for the years ended December 31, 2015, 2014 and 2013 was 52.7%, 2.0% and (48.0%), respectively. The provision for income taxes results in effective tax rates that differ from the federal statutory rates. The reconciliation of the Company’s reported amount of income tax provision (benefit) attributable to continuing operations to the amount of income tax expense that would result from applying domestic federal statutory tax rates to income from continuing operations was:

	Year Ended December 31,
	2015			2014			2013
Federal income tax provision, at statutory rate	$	(5,515	)	$	6,076		$	20,045
State and local income taxes benefit, net of federal benefit		(907	)		1,322			2,693
Nondeductible expenses		295			281			7
Effect of stock-based compensation		989			87			82
Other, net		(363	)		(622	)		1,047
Uncertain tax positions		—			—			—
Valuation allowance		(2,796	)		(6,803	)		(51,357	)
Effective income tax (benefit) provision	$	(8,297	)	$	341		$	(27,483	)

The Components of (loss) income before income taxes were as follows:

	For the Year Ended December 31,
	2015			2014		2013
United States	$	(15,758	)	$	17,360	$	57,368
United Kingdom		—			—		(98	)
	$	(15,758	)	$	17,360	$	57,270

As of December 31, 2015 and 2014, the Company had no liability for uncertain tax positions. The Company records interest and penalties in other operating expenses and other revenue respectively in the consolidated statements of operations. The Company did not recognize any interest related to tax uncertainties in the statements of operations for the years ended December 31, 2015 and 2014. The Company had no accrued interest related to uncertain tax positions as of December 31, 2015 and 2014.

The Internal Revenue Service has completed its examination of the Company’s tax return for 2010 and did not propose any adjustments. The Company is not currently under audit related to its federal tax returns. As of December 31, 2015, tax years subsequent to December 31, 2012 remain open under the federal statute of limitations and for the Company’s significant state jurisdictions. The Company is currently under audit in New York State for tax years 2011 through 2013.