Income Taxes

The Company elected on its U.S. federal income tax return for its taxable year beginning on January 1, 2014 to be treated as a REIT. The benefits of the intended REIT conversion on the Company's tax provision and effective income tax rate are reflected in the tables below. Deferred tax assets and liabilities are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated balance sheets. These temporary differences result in taxable or deductible amounts in future years. The components of the Company's deferred tax assets and liabilities, related to its TRS, are as follows:



Year ended December 31,	2016			2015
	(in thousands)
Deferred tax assets:
Accrued expenses	$	1,655		$	2,125
Property and equipment	5,818			4,414
Net deferred tax assets	7,473			6,539
Deferred tax liabilities:
Property and equipment	(2,192		)	(2,959		)
Intangibles	(1,624		)	(1,365		)
Net deferred tax liabilities	(3,816		)	(4,324		)
Net:	$	3,657		$	2,215

The provision for income taxes charged to operations for years ended December 31, 2016, 2015 and 2014 was as follows:



Year ended December 31,	2016			2015			2014
	(in thousands)
Current tax expense
Federal	$	6,004		$	4,945		$	6,115
State	3,076			3,310			2,303
Total current	9,080			8,255			8,418
Deferred tax (benefit) expense
Federal	(1,324		)	(533		)	(2,680		)
State	(211		)	(280		)	(625		)
Total deferred	(1,535		)	(813		)	(3,305		)
Total provision	$	7,545		$	7,442		$	5,113

The following tables reconcile the statutory federal income tax rate to the actual effective income tax rate for the years ended December 31, 2016, 2015 and 2014:



Year ended December 31,	2016		2015		2014
Percent of pretax income
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes	0.7	%	1.3	%	0.7	%
REIT conversion benefit	(33.2	)%	(31.3	)%	(31.8	)%
Other miscellaneous items	—	%	0.5	%	(0.3	)%
	2.5	%	5.5	%	3.6	%



Year ended December 31,	2016			2015			2014
	(in thousands)
Amount based upon pretax income
U.S. federal statutory income tax	$	103,897		$	47,447		$	50,372
State and local income taxes	2,039			1,702			964
REIT conversion benefit	(98,459		)	(42,438		)	(45,777		)
Permanent differences	44			61			52
Other miscellaneous items	24			670			(498		)
	$	7,545		$	7,442		$	5,113

The Company is still subject to federal income tax examinations for its years ended December 31, 2016, 2015, and 2014.