Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

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

The following table reconciles net income (loss) attributable to Paramount Group, Inc. to estimated taxable income for the years ended December 31, 2018, 2017 and 2016.


	For the Year Ended December 31,
(Amounts in thousands)	2018			2017			2016
Net income (loss) attributable to Paramount Group, Inc.	$	9,147		$	86,381		$	(9,934	)
Book to tax differences:
Straight-lining of rents and amortization of above and below-market leases, net		(48,604	)		(44,083	)		(51,880	)
Depreciation and amortization		92,512			96,991			95,489
Stock-based compensation		17,847			14,441			9,673
Real estate impairment loss		41,788			-			-
Gain on sale of real estate		(14,381	)		(95,182	)		-
Write-off of and valuation allowance on preferred equity investment		(3,574	)		4,327			-
Earnings of unconsolidated joint ventures, including real estate investments		179			(8,600	)		(3,513	)
Swap breakage costs		-			(1,487	)		(25,367	)
Unrealized gain on interest rate swaps		-			(860	)		(4,651	)
Other, net		(8,240	)		1,885			13,295
Estimated taxable income	$	86,674		$	53,813		$	23,112

Summary of Characterization of Dividend Distributions for Federal Income Tax Purposes

The following table sets forth the characterization of dividend distributions for federal income tax purposes for the years ended December 31, 2018, 2017 and 2016

	For the Year Ended December 31,
	2018						2017						2016
	Amount			%			Amount			%			Amount			%
Ordinary income	$	0.286	⁽¹⁾		72.4	%	$	0.195			51.3	%	$	0.107			28.2	%
Long-term capital gain		0.074			18.7	%		0.034			8.9	%		-			-
Return of capital		0.035			8.9	%		0.151			39.8	%		0.273			71.8	%
Total	$	0.395	⁽²⁾		100.0	%	$	0.380	⁽²⁾		100.0	%	$	0.380	⁽²⁾		100.0	%

⁽¹⁾	Represents amounts treated as “qualified REIT dividends” for purposes of Internal Revenue Code 199A.

⁽¹⁾	The fourth quarter dividend for the years ended December 31, 2018, 2017 and 2016 of $0.100, $0.095 and $0.095 per share, respectively, were paid in January of the subsequent years and are allocable to the subsequent years for federal income tax purposes.