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Income Taxes

12 Months Ended

Dec. 31, 2020

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, 2020, 2019 and 2018 is summarized as follows:


	2020		2019		2018
Current:
Federal	$	(173)	$	(70)	$	(60)
State and local	(1,411)		(1,309)		(1,668)
	$	(1,584)	$	(1,379)	$	(1,728)

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


	2020		2019		2018
Federal provision at statutory tax rate (21%)	$	(195)	$	(73)	$	(65)
State and local taxes, net of federal benefit	(77)		(10)		(11)
Other	(1,312)		(1,296)		(1,652)
	$	(1,584)	$	(1,379)	$	(1,728)

For the years ended December 31, 2020, 2019 and 2018, the “other” amount is comprised primarily of state franchise taxes of $1,314, $1,289 and $1,679, respectively.

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, 2020, is as follows:


	2020			2019			2018
Total dividends per share	$	0.420		$	0.485		$	0.710
Ordinary income	95.10		%	61.07		%	87.89		%
Qualifying dividend	0.60		%	0.22		%	0.14		%
Capital gain	—			—			—

Return of capital	4.30		%	38.71		%	11.97		%
	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, 2020, is as follows:


	2020			2019			2018
Total dividends per share	$	3.25		$	3.25		$	3.25
Ordinary income	99.38		%	99.64		%	99.84		%
Qualifying dividend	0.62		%	0.36		%	0.16
Capital gain	—			—			—

Return of capital	—			—			—
	100.00		%	100.00		%	100.00		%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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