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INCOME TAX
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAX INCOME TAX
A TRS is an entity taxed as a corporation that has not elected to be taxed as a REIT, in which a REIT directly or indirectly holds equity, and that has made a joint election with such REIT to be treated as a TRS. A TRS generally may engage in any business, including investing in assets and engaging in activities that could not be held or conducted directly by the Company without jeopardizing its qualification as a REIT. A TRS is subject to applicable United States federal, state and local income tax on its taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRS that are not conducted on an arm’s-length basis. The income tax provision is included in the line item income tax expense, including excise tax.
The income tax provision for the Company was approximately $1.7 million and $1.0 million for the years ended December 31, 2023 and 2022, respectively. The income tax expense for the years ended December 31, 2023 and 2022 primarily related to activities of the Company’s taxable REIT subsidiary.
The income tax provision for the Company and TRS1 consisted of the following for the years ended December 31, 2023 and 2022:
Years ended
December 31,
20232022
Current(1)
$1,546,216 $953,324 
Deferred— — 
Excise tax113,121 73,000 
Total income tax expense, including excise tax$1,659,337 $1,026,324 
(1)During the year ended December 31, 2023, the Company incurred federal taxes of approximately $1.2 million and state and local taxes of approximately $0.3 million. During the year ended December 31, 2022, the Company incurred federal taxes of approximately $0.8 million and state and local taxes of approximately $0.2 million.
For the years ended December 31, 2023 and 2022, the Company incurred approximately $0.1 million and $0.1 million, respectively, for United States federal excise tax. Excise tax represents a 4% tax on the sum of a portion of the Company’s ordinary income and net capital gains not distributed during the period. If it is determined that an excise tax liability exists for the current period, the Company will accrue excise tax on estimated excess taxable income as such taxable income is earned. The expense is calculated in accordance with applicable tax regulations.
The Company does not have any unrecognized tax benefits and the Company does not expect that to change in the next 12 months.