INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Reconciliation of our 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,
	2016			2015			2014
	(in thousands)
Income from continuing operations before income taxes for TRSs	$	5,684		$	3,010		$	5,031

Expected federal income tax provision	$	1,933		$	1,023		$	1,711
State income taxes	21			42			172
Change in valuation allowance	(1,443		)	(302		)	(1,145		)
Other	1,135			43			(134		)
Income tax provision	$	1,646		$	806		$	604

Components of our net deferred tax asset

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



	December 31,
	2016			2015
	(in thousands)
Deferred tax assets:
Net operating losses	$	59		$	1,614
Secured borrowings—government guaranteed loans	706			916
Other	104			264
Total gross deferred tax assets	869			2,794
Valuation allowance	(64		)	(1,507		)
	805			1,287
Deferred tax liabilities:
Loans receivable	(535		)	(618		)
Other	(10		)	(245		)
	(545		)	(863		)
Deferred tax asset, net	$	260		$	424