Income Taxes

Our provision for income taxes consists of the following:



	For the year ended December 31,
	2016		2015		2014
Current:
Federal	$	—	$	—	$	—
State	424		574		576
	424		574		576
Deferred:
Federal	—		—		—
State	—		—		—
	—		—		—
Income tax provision	$	424	$	574	$	576

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



	For the year ended December 31,
	2016		2015		2014
Taxes at statutory U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
Nontaxable income of SNH	(35.0	)%	(35.0	)%	(35.0	)%
State and local income taxes, net of federal tax benefit	0.3	%	0.4	%	0.3	%
Change in valuation allowance	3.58	%	8.82	%	6.39	%
Other differences, net	(3.58	)%	(8.82	)%	(6.39	)%
Effective tax rate	0.3	%	0.4	%	0.3	%

Deferred income tax balances reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities on 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:



	For the year ended December 31,
	2016			2015
Deferred tax assets:
Deferred income	$	2,512		$	2,862

Other	222			115
Tax loss carryforwards	33,626			27,941
	36,360			30,918
Valuation allowance	(36,360		)	(30,918		)
	—			—
Net deferred income taxes	$	—		$	—

Because of our TRSs’ short operating history and history of losses, we are not able to conclude that it is more likely than not we will realize the future benefit of our deferred tax assets; thus we have provided a 100% valuation allowance as of December 31, 2016 and 2015. If and when we believe it is more likely than not that we will recover our deferred tax assets, we will reverse the valuation allowance as an income tax benefit in our consolidated statement of comprehensive income. As of December 31, 2016, our consolidated TRSs had net operating loss carry forwards for federal income tax purposes of approximately $84,688, which, if unused, begin to expire in 2031. In the normal course of business, income tax authorities in various income tax jurisdictions conduct routine audits of our income tax returns filed in prior years. Income tax years subsequent to 2011 may be open to examination in some of the income tax jurisdictions in which we operate.