Income Taxes

12 Months Ended

Dec. 31, 2020

Our Consolidated Financial Statements include the operations of the Company’s taxable REIT subsidiary, which is not entitled to the dividends paid deduction and is subject to federal, state and local income taxes on its taxable income.

The minimum dividend per share of Common Stock required for the Company to maintain its REIT status was $1.41, $1.44 and $1.26 per share in 2020, 2019 and 2018, respectively. Continued qualification as a REIT depends on the Company’s ability to satisfy the dividend distribution tests, stock ownership requirements and various other qualification tests. The tax basis of the Company’s assets (net of accumulated tax depreciation and amortization) and liabilities was approximately $4.7 billion and $2.8 billion, respectively, at December 31, 2020 and $4.7 billion and $2.9 billion, respectively, at December 31, 2019. The tax basis of the Operating Partnership’s assets (net of accumulated tax depreciation and amortization) and liabilities was approximately $4.6 billion and $2.8 billion, respectively, at December 31, 2020 and $4.7 billion and $2.9 billion, respectively, at December 31, 2019.

During the years ended December 31, 2020, 2019 and 2018, the Company qualified as a REIT and incurred no federal income tax expense; accordingly, the only federal income taxes included in the accompanying Consolidated Financial Statements relate to activities of the Company’s taxable REIT subsidiary.

The following table sets forth the Company’s income tax expense:


	Year Ended December 31,
	2020		2019		2018
Current tax expense:
Federal	$	110	$	202	$	133
State	240		148		112
	350		350		245
Deferred tax expense/(benefit):
Federal	(9)		14		(95)
State	(4)		(120)		(68)
	(13)		(106)		(163)


Total income tax expense	$	337	$	244	$	82

The Company’s net deferred tax liability was $0.1 million at both December 31, 2020 and 2019. The net deferred tax liability is comprised primarily of tax versus book differences related to property (depreciation, amortization and basis differences).

For the years ended December 31, 2020 and 2019, there were no unrecognized tax benefits. The Company is subject to federal, state and local income tax examinations by taxing authorities for 2017 through 2020. The Company does not expect that the total amount of unrecognized benefits will materially change within the next year.

- 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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