Federal and State Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Federal and State Income Taxes

18. Federal and State Income Taxes

The Trust has made no provision for regular current or deferred federal income taxes and no deferred state income taxes have been provided for on the basis that the Trust operates in a manner intended to enable it to continue to qualify as a real estate investment trust under Sections 856-860 of the Code. In order to qualify as a REIT, the Trust is generally required each year to distribute to its shareholders at least 90% of its taxable income (excluding any net capital gain). The Trust intends to comply with the foregoing minimum dividend requirements. As of December 31, 2012, the Trust has net operating loss carryforwards of approximately $4,830,000 which will expire in 2023. The Trust does not expect to utilize any of the net operating loss carryforwards to offset 2013 taxable income. The Trust treats certain items of income and expense differently in determining net income reported for financial and tax purposes.

The Trust’s capital loss carryforwards of $31,697,000 are not available in certain states and localities where the Trust has an obligation to pay income taxes. The Trust’s capital loss carryforwards will expire from 2014 through 2015. In addition, certain states and localities disallow state income taxes as a deduction and exclude interest income from United States obligations when calculating taxable income. Federal and state tax calculations can differ due to differing recognition of net operating losses. Accordingly, the Trust has recorded $247,000, $234,000 and $379,000 in state and local taxes for the years ended December 31, 2013, 2012 and 2011, respectively.

Both of the Series B-1 Preferred Shares and Series C Preferred Shares were fully redeemed in 2011.

The 2011 cash dividends per Series B-1 Preferred Share for an individual shareholder’s income tax purposes were as follows:

	Ordinary Dividends		Capital Gains 15% Rate		Nontaxable Distribution		Total Dividends Paid
2011	$	1.30	$	—	$	—	$	1.30

The 2011 cash dividends per Series C Preferred Share for an individual shareholder’s income tax purposes were as follows:

	Ordinary Dividends		Capital Gains 15% Rate		Nontaxable Distribution		Total Dividends Paid
2011	$	1.30	$	—	$	—	$	1.30

The 2013 and 2012 cash dividends per Series D Preferred Share for an individual shareholder’s income tax purposes were as follows:

	Ordinary Dividends		Capital Gains 15% Rate		Nontaxable Distribution		Total Dividends Paid
2013	$	2.31	$	—	$	—	$	2.31
2012		2.31		—		—		2.31

The 2013, 2012 and 2011 cash dividends per Common Share for an individual shareholder’s income tax purposes were as follows:

	Ordinary Dividends		Capital Gains 15% Rate		Nontaxable Distribution		Total Dividends Paid
2013	$	0.65	$	—	$	—	$	0.65
2012		0.49		—		—		0.49
2011		0.69		—		—		0.69

The following table reconciles GAAP net income attributable to the Trust to taxable income (in thousands):

	For the Years Ended December 31,
	2013			2012			2011
Net income(loss) attributable to Winthrop Realty Trust	$	28,778		$	24,631		$	10,933
Book/Tax differences from depreciation and amortization expense		9,563			5,297			4,588
Book/Tax differences of accretion of discount		(4,121	)		(8,333	)		(13,401	)
Book/Tax differences of unrealized gains		(73	)		(6,923	)		(2,788	)
Book/Tax differences on gains/losses from capital transactions		(14,848	)		(1,876	)		(5,842	)
Book/Tax differences on Preferred Shares		—			—			1,428
Book/Tax differences for impairment losses		2,904			3,260			7,600
Book/Tax differences on investments in unconsolidated joint ventures		(17,880	)		4,131			31,634
Other book/tax differences, net		4,194			(8,781	)		(766	)
Book/Tax differences on dividend income		—			(452	)		(371	)
Book/Tax differences of market discount		—			14,065			13,250
Taxable income	$	8,517		$	25,019		$	46,265