Note O — Income Tax
Income Taxes and Distributions
As a REIT, it generally will not be subject to federal income tax on taxable income distributed to the stockholders. In 2016, MVP REIT Inc. has no distributable taxable income. In addition, MVP REIT Inc. does not have any subsidiaries elected to be treated as TRSs pursuant to the Code to participate in services that would otherwise be considered impermissible for REITS and are subject to federal and state income tax at regular corporate tax rates.
Tax Treatment of Distributions
For federal income tax purposes, distributions to stockholders are characterized as ordinary income, capital gain distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S. stockholders' basis (but not below zero) in their shares. The income tax treatment for distributions reportable for the years ended December 31, 2016, 2015 and 2014 is as follows:
| 2016 | 2015 | 2014 | ||||
| Ordinary | $ | -- | $ | -- | $ | -- |
| Capital Gain | - | - | -- | |||
| Return of Capital | 6,637,000 | 4,315,000 | 2,016,000 | |||
| $ | 6,637,000 | $ | 4,315,000 | $ | 2,016,000 | |