XML 41 R18.htm IDEA: XBRL DOCUMENT v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our Consolidated Financial Statements include the operations of our TRSs, which are not entitled to the dividends paid deduction and are subject to federal, state and local income taxes on its taxable income. During the years ended December 31, 2021, 2020 and 2019, the Company qualified as a REIT and incurred no federal income tax expense; accordingly, the only federal income taxes included in the accompanying Consolidated Financial Statements relate to activities of our TRSs. The components of the income tax provision for the years ended December 31, 2021, 2020 and 2019 is comprised of the following: 
Year Ended December 31,
 202120202019
Current:
Federal$(2,458)$(3,659)$(169)
State(1,936)(1,718)(839)
Deferred:
Federal(454)2,969 (2,334)
State(31)— (64)
             Total Income Tax Provision$(4,879)$(2,408)$(3,406)
    
We evaluate tax positions taken in the financial statements on a quarterly basis under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, we may recognize a tax benefit from an uncertain tax position only if it is "more-likely-than-not" that the tax position will be sustained on examination by taxing authorities. As of December 31, 2021, we do not have any unrecognized tax benefits.
We file income tax returns in the U.S. and various states. The statute of limitations for income tax returns is generally three years. As such, our tax returns that are subject to examination would be primarily from 2018 and thereafter. There were no material interest or penalties recorded for the years ended December 31, 2021, 2020 and 2019.
Federal Income Tax Treatment of Common Dividends
For the years ended December 31, 2021, 2020 and 2019, the dividends paid to the Company's common shareholders per common share for income tax purposes were characterized as follows:
2021As a
Percentage
of
Distributions		2020As a
Percentage
of
Distributions		2019As a
Percentage
of
Distributions
Ordinary Income (A)
$0.9928 91.93 %$0.5800 58.00 %$0.7650 83.15 %
Unrecaptured Section 1250 Capital Gain0.0060 0.55 %0.2576 25.76 %0.1074 11.68 %
Other Capital Gain0.0128 1.19 %0.1624 16.24 %0.0460 5.00 %
Qualified Dividend0.0684 6.33 %— 0.00 %0.0016 0.17 %
$1.0800 100.00 %$1.0000 100.00 %$0.9200 100.00 %
(A) For the years ended December 31, 2021, 2020 and 2019, the Code Section 199A dividend is equal to the total ordinary income dividend.
The income tax characterization of dividends to common shareholders is based on the calculation of Taxable Earnings and Profits, as defined in the Code. Taxable Earnings and Profits differ from regular taxable income due primarily to differences in the estimated useful lives and methods used to compute depreciation and in the recognition of gains and losses on the sale of real estate assets.