Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

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, 2021, 2020 and 2019:

	2021(1)				2020(1)				2019(1)
Ordinary income	$	0.04	6.0	%	$	0.08	5.2	%	$	1.32	44.2	%
Capital gains	0.15		24.9	%	0.02		1.3	%	0.64		21.2	%
Return of capital	0.41		69.1	%	1.45		93.5	%	1.04		34.6	%
Dividends paid	$	0.60	100.0	%	$	1.55	100.0	%	$	3.00	100.0	%

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(1)The 2021, 2020 and 2019 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, 2021, 2020 and 2019 are as follows:

	2021		2020		2019
Current	$	—	$	439	$	(150)
Deferred	(6,948)		8		(1,439)
Income tax (expense) benefit	$	(6,948)	$	447	$	(1,589)

The income tax provision of the TRSs for the years ended December 31, 2021, 2020 and 2019 are reconciled to the amount computed by applying the Federal Corporate tax rate as follows:

	2021		2020		2019
Book loss (income) for TRSs	$	(23,205)	$	6,058	$	(2,062)
Tax at statutory rate on earnings from continuing operations before income taxes	$	(4,873)	$	1,272	$	(433)
State taxes	(1,261)		(31)		(280)
Other	(814)		(794)		(876)
Income tax (expense) benefit	$	(6,948)	$	447	$	(1,589)

The tax effects of temporary differences and carryforwards of the TRSs included in the net deferred tax assets at December 31, 2021 and 2020 are summarized as follows:

	2021		2020
Net operating loss carryforwards	$	23,944	$	27,196
Property, primarily differences in depreciation and amortization, the tax basis of land assets and treatment of certain other costs	(1,013)		2,927
Other	475		644
Net deferred tax assets	$	23,406	$	30,767

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 Tax Cuts and Jobs Act of 2017, NOLs generated in 2018 and subsequent tax years are carried forward indefinitely. The Coronavirus Aid, Relief and Economic Security Act removed the 80% of taxable income limitation, imposed by the Tax Cuts and Jobs Act, for NOLs generated in 2018, 2019 and 2020.

For the years ended December 31, 2021, 2020 and 2019 there were no unrecognized tax benefits.

The Company is required to establish a valuation allowance for any portion of the deferred tax asset that the Company concludes is more likely than not to be unrealizable. The Company’s assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carry back years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. As of December 31, 2021, the Company had no valuation allowance recorded.

The tax years 2018 through 2020 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.