FEDERAL INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

FEDERAL INCOME TAXES

NOTE 13 – FEDERAL INCOME TAXES

Characterization of Distributions

The following table characterizes the distributions paid for the years ended December 31, 2022, 2021 and 2020:

	2022					2021					2020
	Amount		Percent			Amount		Percent			Amount		Percent
Common Stock
Ordinary income	$	0		0	%	$	0.024636		3.24	%	$	0		0	%
Capital gains		0		0	%		0.002008		0.26	%		0		0	%
Return of capital		0.80		100.00	%		0.733356		96.50	%		0.72		100.00	%
	$	0.80		100.00	%	$	0.76		100.00	%	$	0.72		100.00	%
Preferred Stock - Series B
Ordinary income	$	0		0	%	$	0		0	%	$	0.661633		37.33	%
Capital gains		0		0	%		0		0	%		0		0	%
Return of capital		0		0	%		0		0	%		1.110567		62.67	%
	$	0		0	%	$	0		0	%	$	1.772200		100.00	%
Preferred Stock - Series C
Ordinary income	$	0.432071		39.22	%	$	1.560268		92.46	%	$	0.630008		37.33	%
Capital gains		0		0	%		0.127232		7.54	%		0		0	%
Return of capital		0.669479		60.78	%		0		0	%		1.057492		62.67	%
	$	1.101550		100.00	%	$	1.687500		100.00	%	$	1.687500		100.00	%

	2022					2021					2020
	Amount		Percent			Amount		Percent			Amount		Percent
Preferred Stock - Series D
Ordinary income	$	0.625130		39.22	%	$	1.473586		92.46	%	$	0.595008		37.33	%
Capital gains		0		0	%		0.120164		7.54	%		0		0	%
Return of capital		0.968620		60.78	%		0		0	%		0.998742		62.67	%
	$	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 year ended December 31, 2022, S&F had operating income for financial reporting purposes of $71,000. For the years ended December 31, 2021 and 2020, S&F had operating losses for financial reporting purposes of $1.4 million and $273,000, respectively. Therefore, a valuation allowance has been established against any deferred tax assets relating to S&F. For the years ended December 31, 2022, 2021 and 2020, S&F recorded $16,000, $10,000 and $10,000, respectively, in federal, state and franchise taxes.