Income Taxes

6 Months Ended

Jun. 30, 2020

We are domiciled in the USVI and are obligated to pay taxes to the USVI on our income. We applied for tax benefits from the USVI Economic Development Commission and received our certificate of benefits (the “Certificate”), effective as of February 1, 2013. Pursuant to the Certificate, as long as we comply with its provisions, we will receive a 90% tax reduction on our USVI-sourced income taxes until 2043.

As of June 30, 2020 and December 31, 2019, we accrued no interest or penalties associated with any unrecognized tax benefits, nor did we recognize any interest expense or penalties during the six months ended June 30, 2020 and 2019.

The following table sets forth the components of our deferred tax assets:


	June 30, 2020		December 31, 2019
Deferred tax assets:
Stock compensation	$	88	$	114
Accrued expenses	756		669
Net operating losses	209		357
Lease liabilities	902		955
Front Yard common stock	630		—
Other	69		48
Gross deferred tax assets	2,654		2,143
Deferred tax liability:
Right-of-use lease assets	860		922
Front Yard common stock	—		42
Depreciation	—		4
Gross deferred tax liabilities	860		968
Net deferred tax assets before valuation allowance	1,794		1,175
Valuation allowance	(946)		(491)
Deferred tax asset, net	$	848	$	684

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details