Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of deferred tax liabilities and assets

Significant components of our deferred tax liabilities and assets are as follows (in thousands):



	December 31,
	2013			2012
Deferred tax liabilities:
Partnership differences	$	50,290		$	29,745
Deferred revenue	25,596			23,139
Capitalized interest	11,424			16,157
Other	49			—
Total deferred tax liabilities	$	87,359		$	69,041

Deferred tax assets:
Net operating, capital and other loss carryforwards	$	62,651		$	66,145
Differences in basis of real estate	35,604			33,321
Receivables	440			1,183
Accruals and expenses	9,272			9,398
Tax credit carryforwards	12,905			7,724
Management contracts and other	393			629
Total deferred tax assets	121,265			118,400
Valuation allowance	(3,553		)	(4,531		)
Net deferred income tax assets	$	30,353		$	44,828

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending balance of our unrecognized tax benefits is presented below (in thousands):



	2013			2012			2011
Balance at January 1	$	3,536		$	3,917		$	4,071
Reductions as a result of a lapse of the applicable statutes	(764		)	(684		)	—
Additions (reductions) based on tax positions related to prior years and current year excess benefits related to stock-based compensation	99			303			(154		)
Balance at December 31	$	2,871		$	3,536		$	3,917

Components of the provision (benefit) for income taxes

Significant components of the income tax benefit or expense are as follows and are classified within income tax benefit in continuing operations and income from discontinued operations, net in our statements of operations for the years ended December 31, 2013, 2012 and 2011 (in thousands):



	2013			2012			2011
Current:
Federal	$	—		$	—		$	(109	)
State	63			1,047			604
Total current	63			1,047			495

Deferred:
Federal	7,621			7,116			(143		)
State	1,685			812			(903		)
Total deferred	9,306			7,928			(1,046		)
Total expense (benefit)	$	9,369		$	8,975		$	(551	)
Classification:
Continuing operations	$	(1,959	)	$	(858	)	$	(5,941	)
Discontinued operations	$	11,328		$	9,833		$	5,390

Reconciliation of income tax attributable to continuing and discontinued operations

The reconciliation of income tax attributable to continuing and discontinued operations computed at the U.S. statutory rate to income tax expense (benefit) is shown below (dollars in thousands):



	2013					2012					2011
	Amount			Percent		Amount			Percent		Amount			Percent
Tax at U.S. statutory rates on consolidated income or loss subject to tax	$	16,326		35.0	%	$	6,642		35.0	%	$	1,756		35.0	%
State income tax expense (benefit), net of Federal tax (benefit) expense	1,748			3.7	%	1,859			9.8	%	(299		)	(6.0	)%
Effect of permanent differences	(296		)	(0.6	)%	(256		)	(1.3	)%	(565		)	(11.3	)%
Tax effect of intercompany transfers of assets between the REIT and taxable REIT subsidiaries (1)	(4,272		)	(9.2	)%	730			3.8	%	(1,965		)	(39.2	)%
Tax credits	(4,137		)	(8.9	)%	—			—	%	—			—	%
Increase in valuation allowance	—			—	%	—			—	%	522			10.4	%
	$	9,369		20.0	%	$	8,975		47.3	%	$	(551	)	(11.1	)%


(1)	Includes the effect of assets contributed by the Aimco Operating Partnership to TRS entities, for which deferred tax expense or benefit was recognized upon the sale or impairment of the asset by the TRS entity.

Dividends paid to holders of Common Stock

For the years ended December 31, 2013, 2012 and 2011, dividends per share held for the entire year were estimated to be taxable as follows:



	2013				2012				2011
	Amount		Percentage		Amount		Percentage		Amount		Percentage
Ordinary income	$	0.17	17.9	%	$	—	—	%	$	—	—	%
Capital gains	0.13		13.9	%	0.35		46.6	%	0.12		24.0	%
Unrecaptured Section 1250 gain	0.66		68.2	%	0.41		53.4	%	0.36		76.0	%
	$	0.96	100.0	%	$	0.76	100.0	%	$	0.48	100.0	%