INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of 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,
	2022		2021
	(in thousands)
Income from continuing operations before income taxes for TRSs	$	6,128	$	9,242

Expected federal income tax provision	$	1,287	$	1,941
State income taxes	43		(40)
Change in valuation allowance	300		(273)
Other	(499)		1,364
Income tax provision	$	1,131	$	2,992

Schedule of Components of Net Deferred Tax Asset

The components of the Company’s net deferred tax asset, which are included in other assets, are as follows:


	December 31,
	2022		2021
	(in thousands)
Deferred tax assets:
Net operating losses	$	2,664	$	2,367
Secured borrowings—government guaranteed loans	54		64
Other	145		153
Total gross deferred tax assets	2,863		2,584
Valuation allowance	(2,670)		(2,370)
	193		214
Deferred tax liabilities:
Loans receivable	(71)		(96)

	(71)		(96)
Deferred tax asset, net	$	122	$	118