Federal and State Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Federal and State Income Taxes

10. Federal and State Income Taxes

Winthrop operated in a manner which qualified it as a REIT under Sections 856-860 of the Internal Revenue Code of 1986. In order to qualify as a REIT, Winthrop was generally required each year to distribute to its shareholders at least 90% of its taxable income (excluding any net capital gains). Winthrop met these distribution requirements each year.

For REIT’s, certain states and localities disallow state income taxes as a deduction and exclude interest income from United States obligations when calculating taxable income. Federal and state tax calculations can differ due to differing recognition of net operating losses.

The 2016 dividends per Common Share from Winthrop (January 1, 2016 – August 5, 2016) for an individual shareholder’s income tax purposes were as follows:

	Ordinary Dividends		Capital Gains		Nontaxable Distribution		Cash Liquidating Distribution		Non-Cash Liquidating Distribution		Total Dividends Paid
2016	$	—	$	—	$	—	$	3.25	$	9.21	$	12.46

The Liquidating Trust is treated as a partnership for federal and state income tax purposes. Accordingly, no provision or benefit for income taxes is made in the consolidated financial statements. All distributions from the Liquidating Trust in 2017 and 2016 are considered a return of capital for tax purposes. Unitholders will receive a Schedule K-1 from the Liquidating Trust annually reflecting their allocable share of the Liquidating Trust’s income, loss, gains and deductions.