14.	Income Taxes

For the years ended December 31, 2016, 2015 and 2014, the Company recorded net current tax expense and current deferred tax assets related to deferred income at its TRSs. The components of the income tax expense for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands):

	Years Ended December 31,
	2016			2015			2014
Current:
Federal	$	—		$	—		$	—
State		(351	)		(378	)		(361	)
Total current expense		(351	)		(378	)		(361	)

Deferred:
Federal	―			―			―
State	―			―			―
Total deferred expense	―			―			―
Income tax expense	$	(351	)	$	(378	)	$	(361	)

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets as of years ended December 31, 2016 and 2015 are as follows:

	2016			2015
Carryforwards of net operating loss	$	9,110		$	5,220
Prepaid rent		442			619
Valuation allowance		(9,552	)		(5,839	)
Net deferred tax assets	$	—		$	—

14.	Income Taxes (continued)

A reconciliation of the income tax expense computed at the statutory federal tax rate on income before income taxes is as follows (in thousands):

	Years Ended December 31,
	2016					2015					2014
Tax benefit computed at federal statutory rate	$	11,002		35.00	%	$	23,701		35.00	%	$	18,253		35.00	%
Impact of REIT election		(11,002	)	(35.00	)%		(23,701	)	(35.00	)%		(18,253	)	(35.00	)%
State income tax expense		(351	)	(1.12	)%		(378	)	(0.56	)%		(361	)	(0.69	)%
Income tax expense	$	(351	)	(1.12	)%	$	(378	)	(0.56	)%	$	(361	)	(0.69	)%

The Company’s TRS entities had net operating loss carry-forwards for federal and state purposes of approximately $48.6 million as of year ended December 31, 2016 to offset future taxable income with approximately $11.5 million, $16.6 million, and $19.6 million of the estimated net operating loss carry-forwards set to expire in 2034, 2035 and 2036, respectively. The Company analyzed its material tax positions and determined that it has not taken any uncertain tax positions. The tax years 2013 through 2016 remain subject to examination by taxing authorities.