INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

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,
	2019			2018			2017
	(in thousands)
Income from continuing operations before income taxes for TRSs	$	4,414		$	4,962		$	4,878

Expected federal income tax provision	$	927		$	1,042		$	1,658
State income taxes	21			35			27
Change in valuation allowance	—			—			(37		)
Other	(66		)	(152		)	(272		)
Income tax provision	$	882		$	925		$	1,376

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,
	2019			2018
	(in thousands)
Deferred tax assets:
Net operating losses	$	39		$	37
Secured borrowings—government guaranteed loans	132			198
Other	166			185
Total gross deferred tax assets	337			420
Valuation allowance	(38		)	(38		)
	299			382
Deferred tax liabilities:
Loans receivable	(210		)	(255		)
	(210		)	(255		)
Deferred tax asset, net	$	89		$	127