Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income Tax Benefit (Provision)

The components of the income tax provision for the years ended December 31, 2016, 2015 and 2014 are comprised of the following:



	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	(656	)	$	68		$	(51	)
State	(251		)	(297		)	(196		)
Deferred:
State	(182		)	112			9
	$	(1,089	)	$	(117	)	$	(238	)

Deferred Tax Assets (Liabilities)

Deferred income taxes represent the tax effect of the temporary differences between the book and tax basis of assets and liabilities. Deferred income tax assets and liabilities include the following as of December 31, 2016 and 2015:



	Year Ended December 31,
	2016			2015
Impairment of Real Estate	$	2,051		$	2,484
Other - Temporary Differences	433			1,021
Valuation Allowance	(2,181		)	(3,437		)
Total Deferred Income Tax Assets, Net of Allowance	$	303		$	68
Straight-line Rent	$	(51	)	$	(79	)
Basis Difference - Real Estate Properties	(260		)	—
Other - Temporary Differences	(186		)	(1		)
Total Deferred Income Tax Liabilities	$	(497	)	$	(80	)
Total Net Deferred Income Tax Liabilities	$	(194	)	$	(12	)

Effective Income Tax Rate Reconciliation

The income tax provision pertaining to income from continuing operations of the TRSs differs from the amounts computed by applying the applicable federal statutory rate as follows for the years ended December 31, 2016, 2015 and 2014:



	Year Ended December 31,
	2016			2015			2014
Tax (Provision) Benefit at Federal Rate Related to Continuing Operations	$	(1,764	)	$	64		$	(532	)
State Tax Provision, Net of Federal Benefit	(462		)	(212		)	(214		)
Non-deductible Permanent Items, Net	7			10			1
Change in Valuation Allowance	1,256			787			1,133
Other	(126		)	(766		)	(626		)
Net Income Tax Provision	$	(1,089	)	$	(117	)	$	(238	)

Federal Income Tax Treatment of Common Dividends

For income tax purposes, dividends paid to the Company's common shareholders are characterized as ordinary income, capital gains or as a return of a shareholder's invested capital. For the years ended December 31, 2016, 2015 and 2014, the dividends per common share were characterized as follows:



	2016		As a Percentage of Distributions		2015		As a Percentage of Distributions		2014		As a Percentage of Distributions
Ordinary Income	$	0.6935	82.53	%	$	0.2629	67.93	%	$	0.4412	100.00	%
Unrecaptured Section 1250 Gain	0.1130		13.45	%	0.1241		32.07	%	—		0.00	%
Capital Gain	0.0066		0.78	%	—		0.00	%	—		0.00	%
Nondividend Distribution - Return of Capital	0.0272		3.24	%	—		0.00	%	—		0.00	%
	$	0.8403	100.00	%	$	0.3870	100.00	%	$	0.4412	100.00	%