Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes

Income Taxes

Note 8.  Income Taxes

We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and are generally not subject to federal and state income taxes provided we distribute our taxable income to our shareholders and meet other requirements for qualifying as a REIT.  However, we are subject to certain state, local and Australian taxes without regard to our REIT status.  During the three months ended March 31, 2012, we recognized current tax expense of $492, which includes $350 of foreign taxes and $142 of certain state taxes.  During the three months ended March 31, 2011, we recognized current tax expense of $346, which includes $244 of foreign taxes and $102 of certain state taxes.  At March 31, 2012 and December 31, 2011, we had deferred tax assets of $1,763 and $1,992, respectively, of which $1,412 and $1,414, respectively, related to different carrying amounts for financial reporting and for Australian income tax purposes of our properties in Australia.  At March 31, 2012 and December 31, 2011, we had deferred tax liabilities of $1,318 and $1,214, respectively.  Because we are uncertain of our ability to realize the future benefit of certain Australian loss carry forwards, we have reduced our net deferred income tax assets by a valuation allowance of $168 and $165 as of March 31, 2012 and December 31, 2011, respectively.