Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Reconciliation Net Income Attributable to Estimated Taxable Income (Loss)

The following table reconciles net income attributable to Paramount Group, Inc. to estimated taxable income for the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014.

				Period from
	Year Ended			November 24, 2014
(Amounts in thousands)	December 31, 2015			to December 31, 2014
Net (loss) income attributable to Paramount Group, Inc.	$	(4,419	)	$	57,308
Book to tax differences:
Straight-line and prepaid rents		(36,131	)		6,927
Depreciation and amortization		104,399			11,691
Stock based compensation		5,794			57,740
Gain on consolidation of unconsolidated joint venture		-			(192,891	)
Swap breakage costs		(27,147	)		(11,316	)
Unrealized gain on interest rate swaps		(29,586	)		(6,832	)
Earnings of unconsolidated joint ventures, including real estate investments		(12,909	)		(5,347	)
Other, net		7,356			20,832
Estimated taxable income (loss) (unaudited)	$	7,357		$	(61,888	)

Summary of Components of Deferred Tax Liabilities

Below is a summary of the components of deferred tax liabilities.

(Amounts in thousands)	Year Ended December 31, 2013
Investment in partnerships/real estate	$	175,438
Basis adjustments		31,981
Deferred compensation		(9,886	)
Net operating losses & carryovers		(9,158	)
Valuation allowance		1,710
Other, net		(491	)
Total deferred tax liabilities	$	189,594

Schedule of Income Tax Position

The following table summarizes our Predecessor’s tax position.

	Period from
	January 1, 2014			Year Ended
(Amounts in thousands)	to November 23, 2014			December 31, 2013
Income before income taxes	$	127,859		$	313,868
Total provision for income taxes		18,461			11,029
Effective income tax rate		14.4	%		3.5	%

Summary of Tax Rate Reconciliation

The following table reconciles our Predecessor’s provision for income taxes to the U.S. federal statutory tax rate.

	Period from
	January 1, 2014	Year Ended
	to November 23, 2014	December 31, 2013
Statutory U.S. federal income tax rate	35.0%	35.0%
Income passed through to common unitholders and noncontrolling interests⁽¹⁾	(24.1%)	(31.6%)
State and local income taxes	5.5%	0.8%
Other	(2.0%)	(0.7%)
Effective income tax rate ⁽²⁾	14.4%	3.5%

⁽¹⁾ Includes income that is not taxable to the Predecessor. Such income is directly taxable to the Predecessor’s unitholders and the noncontrolling interests.

⁽²⁾ The effective tax rate is calculated on income before income taxes.