Income Taxes

6 Months Ended

Jun. 30, 2013

Income Taxes

Income Taxes

Note 11.  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 a sufficient amount of 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.  Our provision for income taxes for the three and six months ended June 30, 2013 and 2012 consists of the following:

	Three Months Ended June 30,					Six Months Ended June 30,
	2013		2012			2013		2012
Current:
State	$	162	$	107		$	325	$	249
Foreign	519		—			1,382		—
	681		107			1,707		249
Deferred:
Foreign	73		(15		)	35		335
	73		(15		)	35		335
Income tax provision	$	754	$	92		$	1,742	$	584

At June 30, 2013 and December 31, 2012, we had deferred tax assets of $1,995 and $2,329, respectively, of which $1,896 and $2,181, respectively, related to different carrying amounts for financial reporting and for Australian income tax purposes of our properties in Australia.  At June 30, 2013 and December 31, 2012, we had deferred tax liabilities of $3,204 and $3,643, 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 $535 and $598 as of June 30, 2013 and December 31, 2012, respectively.