Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes:

For income tax purposes, distributions paid to common stockholders consist of ordinary income, capital gains, unrecaptured Section 1250 gain and return of capital or a combination thereof. The following table details the components of the distributions, on a per share basis, for the years ended December 31, 2019, 2018 and 2017:


	2019(1)						2018(1)						2017
Ordinary income	$	1.32	44.2	%	$	1.91	64.3	%	$	1.98	69.0	%
Capital gains	0.64		21.2	%	0.05		1.7	%	0.51		17.8	%
Unrecaptured Section 1250 gain	—		—	%	—		—	%	0.38		13.2	%
Return of capital	1.04		34.6	%	1.01		34.0	%	—		—	%
Dividends paid	$	3.00	100.0	%	$	2.97	100.0	%	$	2.87	100.0	%

_______________________________________________________________________________

(1)The 2019 and 2018 taxable ordinary dividends are treated as "qualified REIT dividends" for purposes of Internal Revenue Code Section 199A.

The Company has made Taxable REIT Subsidiary elections for all of its corporate subsidiaries other than its Qualified REIT Subsidiaries. The elections, effective for the year beginning January 1, 2001 and future years, were made pursuant to Section 856(l) of the Code.

The income tax provision of the TRSs for the years ended December 31, 2019, 2018 and 2017 are as follows:


	2019		2018		2017
Current	$	(150)	$	413	$	185
Deferred	(1,439)		3,191		(15,779)
Income tax (expense) benefit	$	(1,589)	$	3,604	$	(15,594)

The income tax provision of the TRSs for the years ended December 31, 2019, 2018 and 2017 are reconciled to the amount computed by applying the Federal Corporate tax rate as follows:


	2019		2018		2017
Book (income) loss for TRSs	$	(2,062)	$	19,525	$	2,094
Tax at statutory rate on earnings from continuing operations before income taxes	$	(433)	$	4,100	$	712
Change in tax rates	—		—		(14,189)
State taxes	(280)		513		109
Other	(876)		(1,009)		(2,226)
Income tax (expense) benefit	$	(1,589)	$	3,604	$	(15,594)

The Tax Cuts and Jobs Act of 2017 (“TCJA”), signed into law on December 22, 2017, adjusted the federal corporate tax income rate to 21%. FASB Accounting Standards Codification Topic 740 requires deferred tax assets and liabilities to be measured at the enacted rate expected to apply when temporary differences are to be realized or settled. Accordingly, the Company remeasured its ending deferred tax asset and reduced the value by $14,189 for the year ended December 31, 2017. Additionally, GAAP requires that all adjustments resulting from tax rate changes be recorded to the income statement. Therefore, the Company recorded a $14,189 deferred tax expense for the year ended December 31, 2017 related to the revaluation of its deferred tax assets and liabilities.

The net operating loss ("NOL") carryforwards for NOLs generated through the 2017 tax year are scheduled to expire through 2037, beginning in 2025. Pursuant to the TCJA, NOLs generated in 2018 and subsequent tax years carryforward indefinitely subject to the 80% of taxable income limitation.

The tax effects of temporary differences and carryforwards of the TRSs included in the net deferred tax assets at December 31, 2019 and 2018 are summarized as follows:


	2019		2018
Net operating loss carryforwards	$	22,338	$	25,751
Property, primarily differences in depreciation and amortization, the tax basis of land assets and treatment of certain other costs	6,784		4,524
Other	1,635		1,922
Net deferred tax assets	$	30,757	$	32,197

For the years ended December 31, 2019, 2018 and 2017 there were no unrecognized tax benefits.

The tax years 2016 through 2018 remain open to examination by the taxing jurisdictions to which the Company is subject. The Company does not expect that the total amount of unrecognized tax benefit will materially change within the next 12 months.