Federal and State Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Federal and State Income Taxes

11. Federal and State Income Taxes

Winthrop operated in a manner which qualified it as a REIT under Sections 856-860 of the Code. In order to qualify as a REIT, Winthrop was generally required each year to distribute to its shareholders at least 90% of its taxable income (excluding any net capital gain).

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.

The 2016 and 2015 dividends per Common Share from Winthrop for an individual shareholder’s income tax purposes were as follows:

							Cash		Non-Cash		Total
	Ordinary		Capital		Nontaxable		Liquidating		Liquidating		Dividends
	Dividends		Gains		Distribution		Distribution		Distribution		Paid
2016	$	—	$	—	$	—	$	3.25	$	9.21	$	12.46
2015		—		—		—		4.50		—		4.50

The Liquidating Trust will be treated as a partnership for federal and state income tax purposes. Accordingly, no provision or benefit for income taxes is made in the consolidated financial statements. All distributions from the Liquidating Trust in 2016 are considered a return of capital for tax purposes.