INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the expected income tax expense (benefit) at the statutory federal income tax rate of 35% to the Company’s actual provision for income taxes and the effective tax rate for the years ended December 31, 2017 and 2016, respectively, is as follows (amounts in thousands):



	2017										2016
	Continuing Operations			Discontinued Operations		Total			%		Total			%
Computed tax provision (benefit) at federal statutory rate of 35%	$	(2,306	)	$	1,762	$	(544	)	35.0	%	$	(2,701	)	35.0	%

Permanent differences:
State taxes, net of federal benefit	(171		)	200		29			(1.9	)%	(254		)	3.3	%
Change in valuation allowance	(69,278		)	—		(69,278		)	4,457.2	%	2,846			(36.8	)%
Federal rate change	66,381			—		66,381			(4270.8	)%	—			—	%
State NOL expiration and rate change	2,576			—		2,576			(165.7	)%	—			—	%
Other true-up	686			—		686			(44.1	)%	—			—	%
Other permanent differences	149			1		150			(9.7	)%	109			(1.5	)%
Provision (Benefit) for income taxes	$	(1,963	)	$	1,963	$	—		—	%	$	—		—	%

Schedule of Deferred Tax Assets and Liabilities

he significant components of deferred tax assets and liabilities in the consolidated balance sheets for continuing operations as of December 31, 2017 and 2016, respectively, were as follows (in thousands):



Deferred Tax Assets	2017			2016*
Loss carryforward	$	104,897		$	160,673
Allowance for credit loss	2,500			3,894
Impairment of real estate owned	2,983			4,744
Reserve against judgment	8,045			10,415
Capitalized real estate costs	347			7,406
Accrued expenses	638			476
Stock based compensation	412			725
Fixed assets and other	(1,773		)	(1,005		)
Total deferred tax assets before valuation allowance	118,049			187,328
Valuation allowance	(118,049		)	(187,328		)
Total deferred tax assets net of valuation allowance	$	—		$	—

* amounts for the year ended December 31, 2016 restated to include amounts from continuing operations only