INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Net Income to REIT Taxable Income

A reconciliation of the provision for income tax attributable to the TRSs’ income from continuing operations computed at federal statutory rates to the income tax provision reported in the financial statements is as follows:


	Year Ended December 31,
	2020		2019		2018
	(in thousands)
(Loss) income from continuing operations before income taxes for TRSs	$	(7,995)	$	4,414	$	4,962

Expected federal income tax (benefit) provision	$	(1,679)	$	927	$	1,042
State income taxes	(1,562)		21		35
Change in valuation allowance	2,605		—		—
Other	(86)		(66)		(152)
Income tax (benefit) provision	$	(722)	$	882	$	925

Schedule of Components of Net Deferred Tax Asset

The components of our net deferred tax asset, which are included in other assets, are as follows:


	December 31,
	2020		2019
	(in thousands)
Deferred tax assets:
Net operating losses	$	2,645	$	39
Secured borrowings—government guaranteed loans	96		132
Other	160		166
Total gross deferred tax assets	2,901		337
Valuation allowance	(2,643)		(38)
	258		299
Deferred tax liabilities:
Loans receivable	(67)		(210)

	(67)		(210)
Deferred tax asset, net	$	191	$	89