Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s TRSs are subject to federal and state income taxes. The Company’s TRSs are structured under two TRS holding companies, which we refer to as TRS I and TRS 2, that are treated separately for income tax purposes.

The components of income tax expense for the following periods are as follows (in thousands):

	For the three months ended				For the six months ended
	June 30,				June 30,
	2013		2012		2013		2012
Federal	$	35	$	116	$	35	$	90
State	10		17		10		10
Tax expense	$	45	$	133	$	45	$	100

At June 30, 2013, TRS 1 had a gross deferred tax asset associated with future tax deductions of $0.5 million. TRS 1 has continued to record a full valuation allowance equal to 100% of the gross deferred tax asset due to the uncertainty of realizing the benefit of its deferred assets due to the cumulative taxable losses incurred by TRS 1 since its inception. TRS 2 has a gross deferred tax asset of $0.1 million as of June 30, 2013 and no valuation allowance has been recorded in connection with the gross deferred tax assets of TRS 2 for June 30, 2013.