Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of cash distributions for federal income tax purposes

For federal income tax purposes, the cash distributions to shareholders are characterized as follows:



	For the Years Ended December 31,
	2018		2017
Common distributions:
Ordinary income	60.0	%	73.0	%
Return of capital	—		27.0	%
Capital gains	34.0	%	—
Qualified dividend	6.0	%	—
	100.0	%	100.0	%

Preferred distributions:
Ordinary income	60.0	%	100.0	%
Return of capital	—		—
Capital gains	34.0	%	—
Qualified dividend	6.0	%	—
	100.0	%	100.0	%

Schedule of components of the income tax provision from continuing operations

The components of the income tax provision are as follows (in thousands):



	For the Years Ended December 31,
	2018			2017			2016
Current:
Federal	$	—		$	(67	)	$	(76	)
State	(2,209		)	(2,304		)	(1,113		)
Deferred:
Federal	(4,867		)	(43,181		)	(6,141		)
State	(1,717		)	3,434			(860		)
Income tax expense	$	(8,793	)	$	(42,118	)	$	(8,190	)

Schedule of differences between provision for income taxes from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income from continuing operations

The provision for income taxes is different from the amount of income tax expense that is determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences (in thousands):



	For the Years Ended December 31,
	2018			2017			2016
Expected U.S. federal tax expense at statutory rate	$	(41,864	)	$	(41,593	)	$	(73,327	)
Tax impact of REIT election	35,058			33,236			68,477
Expected tax expense at TRS	(6,806		)	(8,357		)	(4,850		)
Change in valuation allowance	542			366			(1,254		)
State income tax expense, net of federal	(1,463		)	(1,388		)	(1,520		)
Impact of rate change	(51		)	(31,667		)	20
Other permanent items	(566		)	(513		)	(382		)
Impact of provision to return/deferred adjustments	(449		)	(559		)	(204		)
Income tax expense	$	(8,793	)	$	(42,118	)	$	(8,190	)

A reconciliation of the Company's effective tax rate to the statutory U.S. federal income tax rate is as follows:



	For the Years Ended December 31,
	2018		2017		2016
Statutory U.S. federal income tax rate	21.0	%	35.0	%	35.0	%
Impact of REIT election	(17.6	)%	(28.0	)%	(32.7	)%
State and local income taxes	0.9	%	1.2	%	0.7	%
Change in valuation allowance	(0.3	)%	(0.3	)%	0.6	%
Impact of rate change	—	%	26.6	%	—	%
Other	0.6	%	0.9	%	0.3	%
Effective tax rate	4.6	%	35.4	%	3.9	%

Schedule of deferred tax assets (liabilities)

Deferred income taxes represent the tax effect from continuing operations of the differences between the book and tax basis of the assets and liabilities. The deferred tax assets (liabilities) include the following (in thousands):



	December 31, 2018			December 31, 2017
Deferred tax liabilities:
Prepaid expenses	$	(1,298	)	$	(1,501	)
Intangible assets	(1,468		)	(3,597		)
Deposits	—			(449		)
Deferred tax liabilities	$	(2,766	)	$	(5,547	)

Deferred tax assets:
Property and equipment	$	2,639		$	5,427
Incentive and vacation accrual	4,595			4,576
Deferred revenue - key money	1,037			1,095
Allowance for doubtful accounts	156			128
Partnership basis	573			918
Contingent liability	298			301
Other	1,077			357
Other carryforwards	—			184
Net operating loss carryforwards	57,248			64,546
Federal historic tax credit	824			824
Valuation allowance	(21,052		)	(21,595		)
Deferred tax assets	$	47,395		$	56,761