Income Taxes

The 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 provision for income taxes for the years ended December 31, 2015, 2014 and 2013 is summarized as follows:



	2015			2014			2013
Current:
Federal	$	—		$	145		$	(1,445	)
State and local	(645		)	(1,130		)	(1,593		)
NOL utilized	—			—			586
Deferred:
Federal	59			(91		)	(595		)
State and local	18			(33		)	(130		)
	$	(568	)	$	(1,109	)	$	(3,177	)

Net deferred tax assets (liabilities) of $59 and $(19) are included in other assets (liabilities) on the accompanying Consolidated Balance Sheets at December 31, 2015 and 2014, respectively. These net deferred tax assets (liabilities) 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 provision differs from the amount computed by applying the statutory federal income tax rate to pre-tax operating income as follows:



	2015			2014			2013
Federal provision at statutory tax rate (34%)	$	65		$	(43	)	$	164
State and local taxes, net of federal benefit	12			(9		)	22
Other	(645		)	(1,057		)	(3,363		)
	$	(568	)	$	(1,109	)	$	(3,177	)

For the years ended December 31, 2015, 2014 and 2013, the “other” amount is comprised primarily of state franchise taxes of $679, $1,183 and $1,280, respectively, the write-off of deferred tax liabilities (asset) of $0, $0 and $(150), respectively, and permanent differences of $0, $0, and $1,936, respectively, relating to the transfer of certain assets of the Company's taxable subsidiaries.

As of December 31, 2015 and 2014, the Company had estimated net operating loss carry forwards for income tax reporting purposes of $146 and $0, respectively, which will begin to expire in tax year 2035.

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, 2015, is as follows:



	2015			2014			2013
Total dividends per share	$	0.68		$	0.67		$	0.60
Ordinary income	63.07		%	49.44		%	35.53		%
Qualifying dividend	—			0.05		%	4.11		%
Capital gain	—			—			2.09		%
Return of capital	36.93		%	50.51		%	58.27		%
	100.00		%	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, 2015, is as follows:



	2015			2014			2013
Total dividends per share	$	3.25		$	3.25		$	3.25
Ordinary income	100.00		%	99.90		%	85.14		%
Qualifying dividend	—			0.10		%	9.85		%
Capital gain	—			—			5.01		%
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, 2015, is as follows:



	2015		2014		2013
Total dividends per share	$	—	$	—	$	1.043368
Ordinary income	—		—		85.14		%
Qualifying dividend	—		—		9.85		%
Capital gain	—		—		5.01		%
Return of capital	—		—		—		%
	—		—		100.00		%