Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes

Income Taxes

12.          Income Taxes

We have elected to be taxed as a REIT, and accordingly, we have incurred no federal income tax expense related to our REIT subsidiaries except for our TRSs.

Our consolidated financial statements include the operations of our TRSs, which are subject to federal, state and local income taxes on their taxable income. As a REIT, we may also be subject to federal excise taxes if we engage in certain types of transactions. Continued qualification as a REIT depends on our ability to satisfy the REIT distribution tests, stock ownership requirements and various other qualification tests. The net basis of our assets and liabilities for tax reporting purposes is approximately $422.1 million higher than the amounts reported in our consolidated balance sheet as of December 31, 2023.

The following is a summary of our income tax (expense) benefit:

	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Current tax expense	$	(1,282)	$	(1,701)	$	(709)
Deferred tax (expense) benefit		1,578		437		(2,832)
Income tax (expense) benefit	$	296	$	(1,264)	$	(3,541)

As of December 31, 2023 and 2022, we have a net deferred tax liability of $3.3 million and $4.9 million primarily related to basis differences in management, leasing and other investment, partially offset by deferred tax assets associated with tax versus book differences and related general and administrative expenses. We are subject to federal, state and local income tax examinations by taxing authorities for the tax years ending in 2019 through 2022.

	December 31,
	2023		2022
	(In thousands)
Deferred tax assets:
Accrued bonus	$	474	$	474
NOL		—		159
Deferred revenue		503		1,266
Charitable contributions		748		500
Other		171		307
Total deferred tax assets		1,896		2,706
Valuation allowance		(748)		(500)
Total deferred tax assets, net of valuation allowance		1,148		2,206
Deferred tax liabilities:
Basis difference - intangible assets		(2,739)		(3,835)
Basis difference - real estate		(344)		(1,722)
Basis difference - investments		(1,348)		(1,517)
Other		(43)		(35)
Total deferred tax liabilities		(4,474)		(7,109)
Net deferred tax liability	$	(3,326)	$	(4,903)

During the year ended December 31, 2023, our Board of Trustees declared cash dividends totaling $0.675 of which $0.135 was taxable as ordinary income for federal income tax purposes and $0.540 were capital gain distributions. During the year ended December 31, 2022, our Board of Trustees declared cash dividends totaling $0.90 of which $0.025 was taxable as ordinary income for federal income tax purposes and $0.875 were capital gain distributions. During the year ended December 31, 2021, our Board of Trustees declared cash dividends totaling $0.90 of which $0.252 was taxable as ordinary income for federal income tax purposes and $0.648 were capital gain distributions.