Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

The following table summarizes the Company's income tax provision for the years ended December 31, 2017 and December 31, 2016 (dollars in thousands):



	For the year ended December 31, 2017			For the year ended December 31, 2016
Current tax provision (benefit)
Federal	$	4,076		$	2,365
State	(267		)	672
Interest and Penalties	—			119
Total Current Provision for Income taxes, net	3,809			3,156
Deferred Provision (Benefit) for Income Taxes
Federal	85			—
State	(407		)	—
Total Deferred Benefit for Income Taxes, net	(322		)	—
Total Income Tax Provision, net	$	3,487		$	3,156

Schedule of Deferred Tax Assets and Liabilities

The following tables disclose the components of the Company's deferred tax asset and deferred tax liability at December 31, 2017 and 2016 (dollars in thousands):



Deferred Tax Asset	December 31, 2017			December 31, 2016
Net operating loss available for carry-back and carry-forward	$	9,604		$	—
Net capital loss carry-forward	4,158			1,981
Investments	1,948			4,504
Deferred tax asset	15,710			6,485
Allowance	(15,303		)	(6,485		)
Net deferred tax asset	$	407		$	—

Summary of Operating Loss Carryforwards



Deferred Tax Liability	December 31, 2017		December 31, 2016
Net operating loss available for carry-back and carry-forward	$	85	$	—
Net deferred tax liability	$	85	$	—

Schedule of Effective Income Tax Rate Reconciliation

The Company's effective tax rate differs from its combined federal and state income tax rate primarily due to the deduction of dividends distributions to be paid under Code Section 857(a). The reconciliation of these rates are as follows:



	For the year ended December 31, 2017		For the year ended December 31, 2016
Federal statutory rate	34.3	%	34.0	%
State statutory rate, net of federal benefit	(1.3	)%	3.0	%
Other	(1.0	)%	(9.5	)%
Change in valuation allowance	0.8	%	(15.4	)%
Effect of statutory rate changes	2.9	%	—	%
REIT earnings not subject to corporate taxes	(31.8	)%	(26.5	)%
Effective Tax Rate	3.9	%	(14.4	)%