Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Summary of Tax Provisions

The following table provides a summary of the Company’s tax provisions (dollars in thousands):

	Year Ended December 31,
	2020		2019		2018
Current
Federal	$	13,125	$	(6,316)	$	(7,534)
State and local	(1,730)		(1,824)		(583)
Foreign	(669)		316		(588)
Total current tax benefit (expense)	10,726		(7,824)		(8,705)
Deferred
Federal	(808)		2,226		(27,817)
Foreign	980		2,426		(537)
Total deferred tax benefit (expense)	172		4,652		(28,354)
Total income tax benefit (expense)	$	10,898	$	(3,172)	$	(37,059)

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and deferred tax liabilities arising from temporary differences are as follows (dollars in thousands):

	December 31,
	2020		2019
Deferred tax assets
Basis difference - investment in partnerships	$	27,394	$	40,626
Disallowed interest expense carry forwards	524		524
Net operating and capital loss carry forwards(1)	3,249		9,910
Other	—		746
Gross deferred tax asset	31,167		51,806
Valuation allowance	(29,212)		(49,244)
Deferred tax assets, net of valuation allowance	$	1,955	$	2,562
Deferred tax liabilities
Basis difference - real estate	(31,282)		(31,463)
Other	(201)		—
Gross deferred tax liabilities	(31,483)		(31,463)
Net deferred tax liability	$	(29,528)	$	(28,901)

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(1)    As of December 31, 2020 and 2019, deferred tax asset was recognized on net operating losses of $6.9 million and $27.1 million, respectively. Net operating losses attributable to U.S. federal and state income taxes, where applicable, generally begin to expire in 2034, or can be carried forward indefinitely.

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. income tax to the Company’s effective income tax is presented as follows (dollars in thousands):

	Year Ended December 31,
	2020		2019		2018
Pre-tax income (loss) attributable to taxable entities	$	(15,652)	$	(1,316)	$	(39,843)
Federal tax expense (benefit) at statutory tax rate (21%, 21% and 21%, respectively)	(3,287)		(276)		(8,367)
State and local taxes, net of federal income tax expense (benefit)	34		71		(644)
Permanent adjustments	(116)		10		41
Adjustments for foreclosure property	1,030		2,840		—
Foreign income tax differential	(172)		(1,328)		24
Foreign income tax rate change	—		(1,383)		—
Return to provision	1,364		(273)		—
Valuation allowance, net	(6,095)		2,402		43,078
Tax rate benefit of capital loss carryback	(3,058)		—		—
Revaluation of deferred taxes due to “Tax Cuts and Jobs Act”	—		—		1,725
Other	(598)		1,109		1,202
Income tax (benefit) expense	$	(10,898)	$	3,172	$	37,059