Income Taxes Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure

Income Taxes

TRS Holdings and Observatory TRS are taxable entities and their consolidated provision for income taxes consisted of the following for the year ended December 31, 2014 and the period October 7, 2013 through December 31, 2013 (amounts in thousands):

	December 31, 2014			Period from October 7, 2013 through December 31, 2013
Current:
Federal	$	(3,253	)	$	844
State and local	(1,792		)	281
Total current	(5,045		)	1,125
Deferred:
Federal	247			—
State and local	143			—
Total deferred	390			—
Income tax (expense) benefit	$	(4,655	)	$	1,125

The effective income tax rate is 44.3% and 45.3% for the year ended December 31, 2014 and the period from October 7, 2013 through December 31, 2013, respectively. The actual tax provision differed from that computed at the federal statutory corporate rate as follows (amounts in thousands):

	December 31, 2014			Period from October 7, 2013 through December 31, 2013
Federal tax (expense) benefit at 34% statutory rate	$	(3,576	)	$	844
State income taxes, net of federal benefit	(1,079		)	281
Income tax (expense) benefit	$	(4,655	)	$	1,125

The income tax effects of temporary differences that give rise to deferred tax assets are presented below (amounts in thousands):

	2014		Period from October 7, 2013 through December 31, 2013
Deferred tax assets:
Deferred revenue on unredeemed observatory admission ticket sales	$	390	$	—
Loss carryforwards	—		1,125
Total deferred tax assets	390		1,125
Deferred tax liabilities:
Total deferred tax liabilities	—		—
Total	$	390	$	1,125

Deferred tax asset of $0.4 million at December 31, 2014 is attributable to the inclusion of deferred revenue on Observatory admission ticket sales not redeemed at year-end in determining income for tax reporting purposes. No valuation allowance has been recorded against the deferred tax asset because the Company believes that the deferred tax asset will, more likely than not, be realized. This determination is based on the Observatory TRS’s anticipated future taxable income and the reversal of the deferred tax asset.

Deferred tax asset of $1.1 million at December 31, 2013 is attributable to the Observatory TRS’s loss during the period from October 7, 2013 through December 31, 2013 as a result of increased percentage rent. Percentage rent is based on gross receipts and the highest percentage is reached in the fourth quarter. The loss was fully absorbed by the Observatory TRS’s profit in 2014. At December 31, 2014, the TRS entities have no amount of unrecognized tax benefits.

For tax years 2014 and 2013, the United States federal and state tax returns are open for examination.