Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The components of our provision for income taxes for the periods presented are as follows (in thousands):



	Years Ended December 31,
	2019			2018		2017
Federal
Current	$	1,953		$	2,227	$	2,787
Deferred	(1,873		)	141		248
	80			2,368		3,035

State and Local
Current	425			873		880
Deferred	(420		)	18		(15		)
	5			891		865
Total Provision	$	85		$	3,259	$	3,900

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes at December 31, 2019 and 2018 consist of the following (in thousands):



	At December 31,
	2019			2018
Deferred Tax Assets
Deferred revenue — key money	$	1,478		$	1,696
Accrued vacation payable and deferred rent	1,544			1,265
Net operating loss carryforwards	785			617
Interest expense limitation	39			—
Gift card liability	1			2
Other	403			453
Total deferred income taxes	4,250			4,033
Valuation allowance	(782		)	(2,956		)
Total deferred tax assets	3,468			1,077
Deferred Tax Liabilities
Deferred rent	(119		)	—
Other	(80		)	(100		)
Total deferred tax liabilities	(199		)	(100		)
Net Deferred Tax Asset	$	3,269		$	977

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision for income taxes with the amount computed by applying the statutory federal income tax rate to income before provision for income taxes for the periods presented is as follows (dollars in thousands):



	Years Ended December 31,
	2019			2018			2017
Pre-tax income from taxable subsidiaries	$	12,016		$	13,768		$	9,581

Federal provision at statutory tax rate ^(a)	$	2,524		$	2,892		$	3,353
Valuation allowance	(2,174		)	(127		)	(1,020		)
Income not subject to federal tax	(513		)	(555		)	(1,102		)
State and local taxes, net of federal provision	387			539			644
Other	(174		)	477			126
Non-deductible expenses	35			33			42
Revaluation of deferred taxes due to Tax Cuts and Jobs Act ^(b)	—			—			1,857
Total provision	$	85		$	3,259		$	3,900

___________


(a)	The applicable statutory tax rate was 21%, 21%, and 35% for the years ended December 31, 2019, 2018 and 2017, respectively.


(b)	The Tax Cuts and Jobs Act, which was signed into law on December 22, 2017, lowered the U.S. corporate income tax rate from 35% to 21%. This amount reflects the net impact of the Tax Cuts and Jobs Act on our domestic TRSs.