INCOME TAXES
Our current and deferred income tax expense (benefit) was $0.3 million and $0.6 million, respectively, for the year ended December 31, 2017, $(0.2) million and $1.7 million, respectively, for the year ended December 31, 2016 and $1.6 million and ($0.7) million, respectively, for the year ended December 31, 2015. We have no unrecognized tax benefits related to uncertain tax positions. Deferred tax assets and liabilities as of December 31, 2017 and 2016 relate to BDL and Buckeye Caribbean. The Tax Act, which went into effect January 1, 2018, did not have a significant impact on the consolidated financial statements.
The net operating loss carryforwards, underlying related deferred tax assets, will expire between 2020 and 2022. Accordingly, a valuation allowance has been provided for deferred tax assets that are not more likely than not to be realized.
The tax effects of significant items comprising our net deferred tax assets and liabilities at December 31, 2017 and 2016 are as follows (in thousands):
|
| | | | | | | |
| December 31, |
| 2017 | | 2016 |
Deferred tax asset: | |
| | |
|
Net operating loss carryforward | $ | 19,234 |
| | $ | 18,909 |
|
Capital loss carryforward | 11,453 |
| | 22,333 |
|
Other | 2,697 |
| | 2,608 |
|
Total deferred tax asset | $ | 33,384 |
| | $ | 43,850 |
|
| | | |
Deferred tax liability: | |
| | |
|
Property, plant and equipment | $ | 1,536 |
| | $ | 1,224 |
|
Other | 83 |
| | 123 |
|
Total deferred tax liability | 1,619 |
| | 1,347 |
|
Net deferred tax asset | 31,765 |
| | 42,503 |
|
Less: Valuation allowance | (29,451 | ) | | (40,972 | ) |
Deferred taxes, net | $ | 2,314 |
| | $ | 1,531 |
|
We are currently under an income tax audit for Buckeye Caribbean by the Puerto Rico Treasury Department for tax years from 2014 through 2016. As of December 31, 2017, BDL’s tax years from 2014 to 2017 and Buckeye Caribbean’s tax years from 2013 through 2017 were open to examination by the Internal Revenue Service and Puerto Rico Treasury Department, respectively.