Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The components of income tax expense for the following periods are as follows (in thousands):


	For the year ended
	December 31,
	2019		2018		2017
Current:
Federal	$	(29)	$	—	$	—
State	—		—		—
Current tax expense (benefit)	$	(29)	$	—	$	—

Deferred:
Federal	29		(28)		350
State	—		—		46
Deferred tax expense (benefit)	29		(28)		396
Total tax expense (benefit)	$	—	$	(28)	$	396

Schedule of Effective Income Tax Rate Reconciliation

The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to the combined income of the Company's TRS before taxes were as follows (in thousands):


	For the year ended
	December 31,
	2019			2018			2017
Book loss before income taxes of the TRS	$	(8,167)		$	(6,040)		$	(4,261)

Statutory rate of 21% for 2018 and after and 34% for prior years applied to pre-tax income	$	(1,715)		$	(1,268)		$	(1,449)
Effect of state and local income taxes, net of federal tax benefit	(347)			(200)			(108)
Tax reform impact	—			—			644
Provision to return adjustment	—			—			5
Permanent adjustments	8			12			13
Change in valuation allowance	2,100			1,456			1,289
Valuation allowance release	—			(28)			—
Other	(46)			—			2
Total income tax (benefit) expense	$	—		$	(28)		$	396

Effective tax rate	—		%	0.46		%	(9.29)		%

Schedule of Deferred Tax Assets and Liabilities

The tax effect of each type of temporary difference and carry forward that gives rise to the deferred tax asset as of December 31, 2019 and 2018 are as follows (in thousands):


	For the year ended
	December 31,
	2019		2018
Total deferreds:
Allowance for doubtful accounts	$	117	$	68

Accrued compensation	870		731
AMT credit	29		58



Total book to tax difference in partnership	(103)		(193)
Net operating loss	4,741		2,654
Valuation allowance	(5,625)		(3,260)

Net deferred tax asset	$	29	$	58