Income Taxes

Our provision for income taxes consists of the following (in thousands):



	Year Ended December 31,
	2016		2015			2014
Current:
State	$	745	$	270		$	350
Federal	—		513			—
Foreign	—		2,336			2,772
	745		3,119			3,122

Deferred:
Foreign	—		(755		)	69
	—		(755		)	69

Income tax expense	$	745	$	2,364		$	3,191

Federal income tax expense for the year ended December 31, 2015 relates to taxes incurred as a result of a taxable built-in gain triggered by the sale of a property that was previously owned by a C corporation. As a result of the disposition of the Australian properties, we incurred net income tax expense of $1.6 million for the year ended December 31, 2015.

A reconciliation of our effective tax rate and the U.S. Federal statutory income tax rate is as follows:



	Year Ended December 31,
	2016		2015		2014
Taxes at statutory U.S. federal income tax rate	35.00	%	35.00	%	35.00	%
Dividends paid deduction and net operating loss utilization	(35.00	)%	(35.00	)%	(35.00	)%
Federal taxes on built-in gain	—	%	0.50	%	—	%
State, local, and foreign income taxes	0.32	%	1.81	%	11.73	%
Effective tax rate	0.32	%	2.31	%	11.73	%

We have a net operating loss carryforward from prior years and we have fully reserved the associated deferred tax assets due to the uncertainty of our ability to utilize the net operating losses in the future.