FEDERAL INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

FEDERAL INCOME TAXES

NOTE 12 – FEDERAL INCOME TAXES

Characterization of Distributions

The following table characterizes the distributions paid for the years ended December 31, 2021, 2020 and 2019:

	2021					2020					2019
	Amount		Percent			Amount		Percent			Amount		Percent
Common Stock
Ordinary income	$	0.024636		3.24	%	$	0		0	%	$	0		0	%
Capital gains		0.002008		0.26	%		0		0	%		0		0	%
Return of capital		0.733356		96.50	%		0.72		100.00	%		0.72		100.00	%
	$	0.76		100.00	%	$	0.72		100.00	%	$	0.72		100.00	%
Preferred Stock - Series B
Ordinary income	$	0		0	%	$	0.661633		37.33	%	$	1.18476		59.24	%
Capital gains		0		0	%		0		0	%		0.05394		2.70	%
Return of capital		0		0	%		1.110567		62.67	%		0.76130		38.06	%
	$	0		0	%	$	1.772200		100.00	%	$	2.00000		100.00	%
Preferred Stock - Series C
Ordinary income	$	1.560268		92.46	%	$	0.630008		37.33	%	$	0.999640		59.24	%
Capital gains		0.127232		7.54	%		0		0	%		0.045508		2.70	%
Return of capital		0		0	%		1.057492		62.67	%		0.642352		38.06	%
	$	1.687500		100.00	%	$	1.687500		100.00	%	$	1.687500		100.00	%

Preferred Stock - Series D
Ordinary income	$	1.473586	92.46	%	$	0.595008	37.33	%	$	0.94410	59.24	%
Capital gains		0.120164	7.54	%		0	0	%		0.04298	2.70	%
Return of capital		0	0	%		0.998742	62.67	%		0.60667	38.06	%
	$	1.593750	100.00	%	$	1.593750	100.00	%	$	1.593750	100.00	%

In addition to the above, taxable income from non-REIT activities conducted by S&F, a Taxable REIT Subsidiary (“TRS”), is subject to federal, state and local income taxes. Deferred income taxes pertaining to S&F are accounted for using the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial reporting bases of assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards based on enacted tax rates expected to be in effect when such amounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including tax planning strategies and other factors. For the years ended December 31, 2021, 2020 and 2019, S&F had operating losses for financial reporting purposes of $1.4 million, $273,000 and $1.3 million, respectively. Therefore, a valuation allowance has been established against any deferred tax assets relating to S&F. For the years ended December 31, 2021, 2020 and 2019, S&F recorded $10,000, $10,000 and $8,000, respectively, in federal, state and franchise taxes.