Income Taxes

12 Months Ended

Dec. 31, 2019

The net income tax benefit differs from the amount computed by applying the statutory federal income tax rate to CTRS' income before taxes follows ($ in thousands):



	2019					2018					2017
	Amount			Rate		Amount			Rate		Amount			Rate
Federal income tax benefit (expense)	$	(65	)	(21	)%	$	143		21	%	$	47		35	%
State income tax benefit (expense), net of federal income tax effect	(12		)	(4	)%	27			4	%	5			4	%
Deferred tax adjustment	127			41	%
Change in deferred tax assets as a result of change in tax law	—			—	%	—			—	%	(340		)	(254	)%
Valuation allowance	(45		)	(15	)%	(174		)	(26	)%	283			211	%
Other	(5		)	(1	)%	4			1	%	5			4	%
Benefit applicable to income (loss) from continuing operations	$	—		—	%	$	—		—	%	$	—		—	%

The tax effect of significant temporary differences representing deferred tax assets and liabilities of CTRS as of December 31, 2019 and 2018 are as follows (in thousands):



	2019			2018
Income from unconsolidated joint ventures	$	27		$	18
Federal and state tax carryforwards	702			763
Other	99			2
Total deferred tax assets	828			783
Valuation allowance	(828		)	(783		)
Net deferred tax asset	$	—		$	—

A valuation allowance is required to be recorded against deferred tax assets if, based on the available evidence, it is more likely than not that such assets will not be realized. When assessing the need for a valuation allowance, appropriate consideration should be given to all positive and negative evidence related to this realization. This evidence includes, among other things, the existence of current and recent cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, the Company’s history with loss carryforwards and available tax planning strategies.

As of December 31, 2019 and 2018 the deferred tax asset of CTRS equaled $828,000 and $783,000, respectively, with a valuation allowance placed against the full amount of each. The conclusion that a valuation allowance should be recorded as of December 31, 2019 and 2018 was based on the lack of evidence that CTRS could generate future taxable income to realize the benefit of the deferred tax assets.