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Income Taxes
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
 
Our provision for income taxes consists of the following (in thousands):
 
Year Ended December 31,
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
State and local
$
(3,156
)
 
$
(500
)
 
$
(745
)
Federal
—

 
—

 
—

Income tax expense
$
(3,156
)
 
$
(500
)
 
$
(745
)


The tax expense recorded in the current period is primarily the result of the taxable gains from sales of properties during the year ended December 31, 2018.
A reconciliation of our effective tax rate and the U.S. Federal statutory income tax rate is as follows:
 
Year Ended December 31,
 
2018
 
2017
 
2016
Taxes at statutory U.S. federal income tax rate
21.00
 %
 
35.00
 %
 
35.00
 %
Dividends paid deduction and net operating loss utilization
(21.00
)%
 
(35.00
)%
 
(35.00
)%
Federal taxes on built-in gain
—
 %
 
—
 %
 
—
 %
State and local income taxes
1.14
 %
 
1.66
 %
 
0.32
 %
Effective tax rate
1.14
 %
 
1.66
 %
 
0.32
 %

At December 31, 2018 and 2017, we had federal net operating loss (NOL) carryforwards of approximately $90 million and $120 million, respectively. These amounts can be used to offset future taxable income, if any. The REIT will be entitled to utilize NOL carryforwards only to the extent that REIT taxable income exceeds our deduction for dividends paid. NOLs arising in taxable years ending before January 1, 2018 can generally be carried forward 20 years, with no carryforward limitation on NOLs generated after that date. Our NOL carryforwards expire in years 2035 to 2037.