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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Our income tax expense (benefit) for the years ended December 31, 2019, 2018, and 2017 consisted of the following:



	2019			2018			2017
Federal current	$	56		$	(373	)	$	(2,509	)
Federal deferred	1,724			(1,057		)	1,632			⁽¹⁾
Foreign current	1,775		⁽²⁾	1,160			849
Foreign deferred	2,518		⁽³⁾	307			158
State current	62			(128		)	(208		)
State deferred	197			(140		)	183
Total income tax (benefit) expense	$	6,332		$	(231	)	$	105


(1)	Reflects $0.3 million of expense related to the restatement of the net Federal deferred tax asset at December 31, 2017 at the revised 21% Federal corporate income tax rate under the 2017 Tax Act.


(2)	During the year ended December 31, 2019, we recognized $0.9 million of foreign current income tax expense (22% tax rate) related to a promote fee paid by our previous institutional partner in Starfield Hanam (Note 5).

(3)

During the year ended December 31, 2019, we recognized $2.8 million of foreign deferred tax expense (10% tax rate) as we are no longer able to assert indefinite reinvestment in our China assets due to our sale of 50% of our interest in CityOn.Zhengzhou and pending sale of 50% of our interest in CityOn.Xi'an to funds managed by Blackstone (Note 2). The tax expense is related to an excess of the Investments in the UJVs under GAAP accounting over the tax basis of our investments.

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows:



	2019				2018
Deferred tax assets:
Federal	$	4,385		⁽¹⁾	$	5,662		⁽²⁾
Foreign	2,020				1,655
State	1,388				807
Total deferred tax assets	$	7,793			$	8,124
Valuation allowances	(2,761		)	⁽³⁾	(1,744		)	⁽⁴⁾
Net deferred tax assets	$	5,032			$	6,380
Deferred tax liabilities:
Foreign⁽⁵⁾	$	4,449			$	2,454
Total deferred tax liabilities	$	4,449			$	2,454


(1)	Includes a $4.4 million Federal investment tax credit carryforward.


(2)	Includes a $3.6 million Federal investment tax credit carryforward.

(3)

Includes a $1.7 million valuation allowance against Foreign deferred tax assets, and a $1.1 million valuation allowance against State deferred tax assets. The foreign increase in the valuation allowance is primarily due to an unrecognized 2019 net operating loss at one of our China service entities. The increase in the state valuation allowance is due to an unrecognized 2019 Tennessee net operating loss.


(4)	Includes a $1.2 million valuation allowance against Foreign deferred tax assets, and a $0.5 million valuation allowance against State deferred tax assets.

(5)

The foreign deferred tax liability relates to shareholder level withholding taxes from Korea and China on undistributed profi

Tax Status of Dividends, Common Stock [Table Text Block]



Year	Dividends per common share declared		Return of capital		Ordinary income		Long-term capital gain		Unrecaptured Sec. 1250 capital gain
2019	$	2.7000	$	—	$	1.2937	$	1.4063	$	—
2018	2.6200		1.1167		1.4766		0.0263		0.0004
2017	2.5000		0.4775		1.3927		0.4397		0.1901

Tax Status of Dividends, Series J [Table Text Block]



Year	Dividends per Series J Preferred share declared		Ordinary income		Long-term capital gain		Unrecaptured Sec. 1250 capital gain
2019	$	1.6250	$	0.7786	$	0.8464	$	—
2018	1.6250		1.5961		0.0284		0.0005
2017	1.6250		1.0505		0.4011		0.1734

Tax Status of Dividends, Series K [Table Text Block]



Year	Dividends per Series K Preferred share declared		Ordinary income		Long-term capital gain		Unrecaptured Sec. 1250 capital gain
2019	$	1.5625	$	0.7487	$	0.8138	$	—
2018	1.5625		1.5347		0.0273		0.0005
2017	1.5625		1.0101		0.3857		0.1667