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 nine months ended September 30, 2013 and 2012 consists of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Current:
State	$	123	$	130	$	448	$	379
Foreign	561		—		1,943		—
	684		130		2,391		379

Deferred:
Foreign	101		1,192		136		1,527
	101		1,192		136		1,527

Income tax provision	$	785	$	1,322	$	2,527	$	1,906

At September 30, 2013 and December 31, 2012, we had deferred tax assets of $1,926 and $2,329, respectively, and deferred tax liabilities of $3,242 and $3,643, respectively, which primarily related to different carrying amounts for financial reporting and for Australian income tax purposes related to our properties and operations in Australia. 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 $536 and $598 as of September 30, 2013 and December 31, 2012, respectively.