Income Taxes

12 Months Ended

Dec. 31, 2020

Our provision for income taxes consists of the following:


	For the Year Ended December 31,
	2020		2019		2018
Current:
Federal	$	—	$	—	$	—
State	1,250		436		476
	1,250		436		476
Deferred:
Federal	—		—		—
State	—		—		—
	—		—		—
Income tax provision	$	1,250	$	436	$	476

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,
	2020		2019		2018
Taxes at statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Nontaxable income	(21.0)	%	(21.0)	%	(21.0)	%
State and local income taxes, net of federal tax benefit	(1.3)	%	0.5	%	0.1	%



Effective tax rate	(1.3)	%	0.5	%	0.1	%

Deferred income tax balances reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities in 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,
	2020		2019
Deferred tax assets:
Deferred income	$	3,252	$	1,891

Fair market value adjustment	10,856		—
Other	758		149
Tax loss carryforwards	28,358		32,487
	43,224		34,527
Valuation allowance	(43,224)		(34,527)
	—		—
Net deferred income taxes	$	—	$	—

Because of our TRSs' 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, 2020 and 2019. 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 statements of comprehensive income (loss). As of December 31, 2020, our consolidated TRSs had net operating loss carry forwards for federal income tax purposes of approximately $112,239, 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 2015 may be open to examination in some of the income tax jurisdictions in which we operate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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