Note 13. Income Taxes
Our TRSs are subject to corporate level federal, state and local income taxes. The following is a summary of our income tax expense (benefit):
|
|
|
Year Ended December 31, |
|
|||||||||
|
(In thousands) |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|||
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
144 |
|
|
$ |
(18 |
) |
|
$ |
625 |
|
|
State |
|
|
592 |
|
|
|
377 |
|
|
|
242 |
|
|
Total current tax expense |
|
|
736 |
|
|
|
359 |
|
|
|
867 |
|
|
Deferred |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
— |
|
|
|
377 |
|
|
|
(1,286 |
) |
|
State |
|
|
— |
|
|
|
80 |
|
|
|
(276 |
) |
|
Total deferred tax expense |
|
|
— |
|
|
|
457 |
|
|
|
(1,562 |
) |
|
Total income tax expense |
|
$ |
736 |
|
|
$ |
816 |
|
|
$ |
(695 |
) |
Deferred tax assets of zero and $1.3 million are included in other assets, net at December 31, 2016 and 2015, respectively. Deferred tax assets arise from temporary differences in income recognition for GAAP and tax purposes, primarily related to our investments in real estate. The decrease in deferred tax assets during the year ended December 31, 2016 is due to the utilization of net operating loss carryforwards. We determine whether any tax positions taken or expected to be taken meet the “more‑likely‑than‑not” threshold of being sustained by the applicable federal, state or local tax authority. As of December 31, 2016 and 2015, management concluded that there is no tax liability relating to uncertain income tax positions. The Company’s policy is to recognize interest related to any underpayment of income taxes, if any, as interest.