INCOME TAXES

The Partnership itself is not subject to income taxes. Instead, partners are taxed on their share of the Partnership’s taxable income, whether or not cash distributions are paid. The Partnership’s and Funds’ corporate subsidiaries, however, are subject to income taxes. The following tables provide information on the impact of income taxes in taxable subsidiaries. Consolidated income (loss) is reconciled to income (loss) before income taxes in corporate subsidiaries for the years ended December 31 as follows:



(in thousands)	2019			2018		2017
Income (loss) before income taxes	$	(9,795	)	$	7,741	$	25,581
Income (loss) in entities that pass-through pre-tax earnings to the partners	(10,740		)	7,273		23,089
Income subject to income taxes	$	945		$	468	$	2,492

The provision for income taxes relating to corporate subsidiaries of the Partnership and Funds consist of the following income tax benefit (expense) for each of the years ended December 31:



(in thousands)	2019			2018			2017
Current	$	(87	)	$	(180	)	$	(888	)
Deferred	(72		)	76			(288		)
Total	$	(159	)	$	(104	)	$	(1,176	)

Included in the deferred income tax expense for 2019, 2018, and 2017 are $79,000, $67,000, $109,000 related to the utilization of net operating loss carryforwards.

A reconciliation between the federal statutory tax rate and the Partnership’s effective tax rate is as follows for each of the years ended December 31:



	2019		2018		2017
Statutory tax on income (loss)	(21	)%	21	%	34	%
(Income) loss from entities that pass-through pre-tax earnings to the partners	23	%	(20	)%	(30	)%
Effect on deferred tax assets of change in income tax rate	—	%	—	%	1	%
Effective income tax rate	2	%	1	%	5	%

The Tax Cuts and Jobs Act passed by Congress in December 2017 reduced the corporate income tax rate to 21% from 34%. This had the impact of decreasing deferred tax assets by $264,000 and increasing the 2017 effective income tax rate by 1%.

The net deferred tax assets are included in other assets on the consolidated balance sheets and are comprised of the following:



(in thousands)	2019			2018			2017
Compensation-related accruals	$	490		$	454		$	359
Net operating loss carryforwards	8			87			123
Depreciation	(23		)	(16		)	15
Other	(6		)	14			(32		)
Total	$	469		$	539		$	465

The federal net operating loss carryforwards in the table above expire in 2035.