INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of components of income tax expense and total provision (benefit) for TRS and Operating Partnership

The components of income tax expense (benefit) for the years ended December 31, 2019, 2018, and 2017 are as follows (in thousands):



	2019			2018			2017
Current:
Federal	$	869		$	(67	)	$	10
State and local	643			(425		)	777
Deferred:
Federal	(32		)	(279		)	232
State and local	20			(151		)	49
Effect of federal tax law change	—			—			606
Income tax expense (benefit)	$	1,500		$	(922	)	$	1,674

Schedule of reconciliation of federal statutory rate to effective income tax rate for TRS

Below is a reconciliation between the provision for income taxes and the amounts computed by applying the federal statutory income tax rate to the income or loss before taxes:



	2019			2018			2017
Statutory federal income tax provision	$	17,608		$	18,943		$	35,418
Nontaxable income of the REITs	(16,996		)	(19,073		)	(35,073		)
Effect of graduated corporate tax rates	—			—			(10		)
State income taxes, net of federal tax benefit	568			266			716
Provision to return and deferred adjustment	(6		)	75			—
Effect of permanent differences and other	326			(184		)	17
Tax benefit from deduction for partnership distributions	—			(949		)	—
Effect of federal tax law change	—			—			606
Income tax provision (benefit)	$	1,500		$	(922	)	$	1,674

Schedule of significant components of deferred tax assets (liabilities)

Deferred tax assets and liabilities are included within Other Assets in the accompanying Consolidated Balance Sheets.

Significant components of deferred tax assets (liabilities) are as follows (in thousands):



	2019			2018
Tax carryforwards	$	38		$	154
Accrued expenses	2,068			1,893
Other	32			(1		)
Net deferred tax assets	$	2,138		$	2,046

Gross deferred tax assets	$	2,172		$	2,086
Gross deferred tax liabilities	(34		)	(40		)
Net deferred tax assets	$	2,138		$	2,046

Schedule of Characterization of Distributions

For income tax purposes, distributions paid consist of ordinary income and capital gains or a combination thereof. For the years ended December 31, 2019, 2018, and 2017 distributions paid per share were characterized as follows (unaudited):



	2019				2018				2017
	Amount		%		Amount		%		Amount		%
Common Stock
Ordinary income	$	0.6132	85.16	%	$	0.7200	100.00	%	$	0.6725	100.00	%
Capital gain distributions	0.1068		14.84	%	—		—	%	—		—	%
Total	$	0.7200	100.00	%	$	0.7200	100.00	%	$	0.6725	100.00	%

Preferred Stock - Series B
Ordinary income	$	—	—	%	$	—	—	%	$	2.0234	100.00	%
Capital gain distributions	—		—	%	—		—	%	—		—	%
Total	$	—	—	%	$	—	—	%	$	2.0234	100.00	%

Preferred Stock - Series C
Ordinary income	$	—	—	%	$	0.5393	100.00	%	$	1.7813	100.00	%
Capital gain distributions	—		—	%	—		—	%	—		—	%
Total	$	—	—	%	$	0.5393	100.00	%	$	1.7813	100.00	%

Preferred Stock - Series D
Ordinary income	$	1.3732	85.16	%	$	1.6125	100.00	%	$	1.6125	100.00	%
Capital gain distributions	0.2393		14.84	%	—		—	%	—		—	%
Total	$	1.6125	100.00	%	$	1.6125	100.00	%	$	1.6125	100.00	%

Preferred Stock - Series E
Ordinary Income	$	1.3307	85.16	%	$	1.5625	100.00	%	$	0.0694	100.00	%
Capital gain distributions	0.2318		14.84	%	—		—	%	—		—	%
Total	$	1.5625	100.00	%	$	1.5625	100.00	%	$	0.0694	100.00	%