INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017			2016			2015
	(in thousands)
Income from continuing operations before income taxes for TRSs	$	4,878		$	5,684		$	3,010

Expected federal income tax provision	$	1,658		$	1,933		$	1,023
State income taxes	27			21			42
Change in valuation allowance	(37		)	(1,443		)	(302		)
Other	(272		)	1,135			43
Income tax provision	$	1,376		$	1,646		$	806

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,
	2017			2016
	(in thousands)
Deferred tax assets:
Net operating losses	$	39		$	59
Secured borrowings—government guaranteed loans	308			706
Other	111			104
Total gross deferred tax assets	458			869
Valuation allowance	(26		)	(64		)
	432			805
Deferred tax liabilities:
Loans receivable	(333		)	(535		)
Other	—			(10		)
	(333		)	(545		)
Deferred tax asset, net	$	99		$	260