Income Taxes

The benefit (provision) for income taxes relates primarily to the taxable income of the Company's taxable REIT subsidiaries. The earnings, other than in taxable REIT subsidiaries, of the Company are not generally subject to federal income taxes at the Company level due to the REIT election made by the Company.

Income taxes have been provided for on the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities.

The Company's benefit (provision) for income taxes for the years ended December 31, 2013, 2012 and 2011 is summarized as follows:



	2013			2012			2011
Current:
Federal	$	(1,445	)	$	(371	)	$	(440	)
State and local	(1,675		)	(1,156		)	(1,043		)
NOL utilized	586			401			566
Deferred:
Federal	(595		)	141			1,399
State and local	(130		)	45			400
	$	(3,259	)	$	(940	)	$	882

Net deferred tax assets of $106 and $858 are included in other assets on the accompanying Consolidated Balance Sheets at December 31, 2013 and 2012, respectively. These net deferred tax assets relate primarily to differences in the timing of the recognition of income (loss) between GAAP and tax and net operating loss carry forwards.

The income tax benefit (provision) differs from the amount computed by applying the statutory federal income tax rate to pre-tax operating income as follows:



	2013			2012			2011
Federal provision at statutory tax rate (34%)	$	164		$	(573	)	$	(580	)
State and local taxes, net of federal benefit	22			(110		)	(100		)
Other	(3,445		)	(257		)	1,562
	$	(3,259	)	$	(940	)	$	882

For the years ended December 31, 2013, 2012 and 2011, the “other” amount is comprised primarily of state taxes of $1,362, $1,042 and $917, respectively, the write-off of deferred tax liabilities (asset) of $(150), $0 and $3,535, respectively, and permanent differences of $1,936, $37, and $17, respectively, relating to the transfer of certain assets of the Company's taxable subsidiaries.

As of December 31, 2013, the Company had no net operating loss carry forwards for income taxes and $1,635 as of December 31, 2012.

A summary of the average taxable nature of the Company's common dividends for each of the years in the three-year period ended December 31, 2013, is as follows:



	2013			2012			2011
Total dividends per share	$	0.60		$	0.525		$	0.46
Ordinary income	35.53		%	95.68		%	47.33		%
Qualifying dividend	4.11		%	0.99		%	1.11		%
Capital gain	2.09		%	—			—
25% rate gain	—			—			—
Return of capital	58.27		%	3.33		%	51.56		%
	100.00		%	100.00		%	100.00		%

A summary of the average taxable nature of the Company's dividend on shares of its Series B Cumulative Redeemable Preferred Stock for each of the years in the three-year period ended December 31, 2013, is as follows:



	2013		2012			2011
Total dividends per share	$	—	$	1.341667		$	2.0125
Ordinary income	—		98.98		%	97.70		%
15% rate - qualifying dividend	—		1.02		%	2.30		%
15% rate gain	—		—			—
25% rate gain	—		—			—
	—		100.00		%	100.00		%

A summary of the average taxable nature of the Company's dividend on shares of its Series C Preferred for each of the years in the three-year period ended December 31, 2013, is as follows:



	2013			2012			2011
Total dividends per share	$	3.25		$	3.25		$	3.25
Ordinary income	85.14		%	98.98		%	97.70		%
Qualifying dividend	9.85		%	1.02		%	2.30		%
Capital gain	5.01		%	—			—
25% rate gain	—			—			—
Return of capital	—			—			—
	100.00		%	100.00		%	100.00		%

A summary of the average taxable nature of the Company's dividend on shares of its Series D Cumulative Redeemable Preferred Stock for the years in the three-year period ended December 31, 2013, is as follows:



	2013			2012			2011
Total dividends per share	$	1.043368		$	1.8875		$	1.76498	(1)
Ordinary income	85.14		%	98.98		%	97.70		%
Qualifying dividend	9.85		%	1.02		%	2.30		%
Capital gain	5.01		%	—			—
25% rate gain	—			—			—
	100.00		%	100.00		%	100.00		%

_________

(1)Of the total dividend paid in January 2011, $0.12252 was allocated to 2010 and $0.349355 was allocated to 2011.