INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018			2017			2016
	(in thousands)
Income from continuing operations before income taxes for TRSs	$	4,962		$	4,878		$	5,684

Expected federal income tax provision	$	1,042		$	1,658		$	1,933
State income taxes	35			27			21
Change in valuation allowance	—			(37		)	(1,443		)
Other	(152		)	(272		)	1,135
Income tax provision	$	925		$	1,376		$	1,646

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,
	2018			2017
	(in thousands)
Deferred tax assets:
Net operating losses	$	37		$	39
Secured borrowings—government guaranteed loans	198			308
Other	185			111
Total gross deferred tax assets	420			458
Valuation allowance	(38		)	(26		)
	382			432
Deferred tax liabilities:
Loans receivable	(255		)	(333		)
	(255		)	(333		)
Deferred tax asset, net	$	127		$	99