Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 10. Income Taxes

Our provision (benefit) for income taxes consists of the following:

	For the Year Ended December 31,
	2019			2018			2017
Current:
Federal (1)	$	—		$	—		$	(5,431	)
State	2,327			1,575			1,713
Foreign	593			667			670
	2,920			2,242			(3,048		)
Deferred:
Foreign	(127		)	(1,047		)	(236		)
	(127		)	(1,047		)	(236		)
	$	2,793		$	1,195		$	(3,284	)

(1) We realized a $5,431 tax benefit in 2017 related to the enactment of the Tax Cuts and Jobs Act, or the Tax Act.

A reconciliation of our effective tax rate and the current U.S. Federal statutory income tax rate is as follows:

	For the Year Ended December 31,
	2019		2018		2017
Taxes at statutory U.S. federal income tax rate	21.0	%	21.0	%	35.0	%
Nontaxable income of SVC	(21.0	)%	(21.0	)%	(35.0	)%
Minimum tax credit refund	0.0	%	0.0	%	(2.6	)%
State and local income taxes, net of federal tax benefit	0.7	%	0.8	%	0.8	%
Foreign taxes	0.1	%	(0.2	)%	0.2	%
Tax Act adjustment	0.0	%	0.0	%	21.8	%
Change in valuation allowance	0.0	%	0.0	%	(21.8	)%
Other differences, net	0.0	%	0.0	%	0.0	%
Effective tax rate	0.8	%	0.6	%	(1.6	)%

Deferred income tax balances generally reflect the net tax effects of temporary differences between the carrying amounts of certain of our assets and liabilities in our consolidated balance sheets and the amounts used for income tax purposes and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Significant components of our deferred tax assets and liabilities are as follows:

	As of December 31,
	2019			2018
Deferred tax assets:
Tax credits	$	—		$	—
Tax loss carryforwards	44,285			62,436
Other	3,612			2,829
	47,897			65,265
Valuation allowance	(47,897		)	(65,265		)
	—			—
Deferred tax liabilities:
Property basis difference	(6,996		)	(7,174		)
Net deferred tax liabilities	$	(6,996	)	$	(7,174	)

Net deferred tax liabilities are included in accounts payable and other liabilities in the accompanying consolidated balance sheets.

At December 31, 2019 and 2018, our consolidated TRS had a net deferred tax asset, prior to any valuation allowance, of $42,434 and $59,892 respectively, which consists primarily of the tax benefit of net operating loss carryforwards and tax credits. Because of the uncertainty surrounding our ability to realize the future benefit of these assets, we have provided a 100% valuation allowance as of December 31, 2019 and 2018. As of December 31, 2019, our consolidated TRS had net operating loss carryforwards for federal income tax purposes of approximately $167,780 which begin to expire in 2023 if unused.