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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Components of deferred tax liabilities and assets
Significant components of our deferred tax liabilities and assets are as follows (in thousands):
 
December 31,
 
2018
 
2017
Deferred tax liabilities:
 
 
 
Real estate and real estate partnership basis differences
$
12,058

 
$
32,032

Deferred tax assets:
 
 
 
Net operating, capital and other loss carryforwards
$
7,022

 
$
9,523

Accruals and expenses
7,432

 
6,575

Tax credit carryforwards
67,530

 
73,450

Management contracts and other
2,064

 
200

Total deferred tax assets
84,048

 
89,748

Valuation allowance
(4,930
)
 
(25,489
)
Net deferred tax assets
$
67,060

 
$
32,227
Reconciliation of unrecognized tax benefits
A reconciliation of the beginning and ending balance of our unrecognized tax benefits is presented below (in thousands):
 
2018
 
2017
 
2016
Balance at January 1
$
2,476

 
$
2,286

 
$
2,897

Additions (reductions) based on tax positions related to prior years
142

 
190

 
(611
)
Balance at December 31
$
2,618

 
$
2,476

 
$
2,286
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 income before gain on dispositions and gain on dispositions of real estate, net of tax, in our consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 (in thousands):
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
Federal
$
11,269

 
$
(938
)
 
$
5,038

State
10,537

 
525

 
2,916

Total current
21,806

 
(413
)
 
7,954

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
(29,243
)
 
(10,908
)
 
(26,173
)
State
(5,590
)
 
(3,621
)
 
(623
)
Revaluation of deferred taxes due to change in tax rate
—

 
(15,894
)
 
—

Total deferred
(34,833
)
 
(30,423
)
 
(26,796
)
Total benefit
$
(13,027
)
 
$
(30,836
)
 
$
(18,842
)
Reconciliation of income tax attributable to continuing and discontinued operations
The reconciliation of income tax attributable to operations computed at the United States statutory rate to income tax benefit is shown below (dollars in thousands):
 
2018
 
2017
 
2016
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
Tax provision (benefit) at United States statutory rates on consolidated income or loss subject to tax
$
33,296

 
21.0
 %
 
$
(19,459
)
 
35.0
 %
 
$
38,257

 
35.0
 %
State income tax expense, net of federal tax (benefit) expense
12,252

 
7.7
 %
 
(1,769
)
 
3.2
 %
 
7,152

 
6.5
 %
Establishment of deferred tax asset related to partnership basis difference (1)
—

 
—
 %
 
(3,501
)
 
6.3
 %
 
—

 
—
 %
Effect of permanent differences
302

 
0.2
 %
 
(1,629
)
 
2.9
 %
 
(132
)
 
(0.1
)%
Tax effect of intercompany transactions (2)
(33,250
)
 
(21.0
)%
 
—

 
—
 %
 
(47,369
)
 
(43.3
)%
Tax credits
(6,897
)

(4.4
)%
 
(9,607
)
 
17.3
 %
 
(16,750
)
 
(15.3
)%
Tax reform revaluation (3)
288


0.2
 %
 
(15,894
)
 
28.6
 %
 
—

 
—
 %
(Decrease) increase in valuation allowance (4)
(20,434
)

(12.9
)%
 
21,023

 
(37.8
)%
 
—

 
—
 %
Other
1,416


0.9
 %
 
—

 
—
 %
 
—

 
—
 %
Total income tax benefit
$
(13,027
)
 
(8.3
)%
 
$
(30,836
)
 
55.5
 %
 
$
(18,842
)
 
(17.2
)%
(1)
2017 includes the establishment of a deferred tax asset related to partnership basis difference when it became apparent that it would reverse in the foreseeable future. This deferred tax asset was fully reserved in the valuation allowance described below as of December 31, 2017.
(2)
2016 includes the effect of intercompany asset transfers between the Aimco Operating Partnership and TRS entities, for which tax was deferred and recognized as the assets affected GAAP income or loss, for example, through depreciation, impairment, or upon the sale of the asset to a third-party. Effective January 1, 2017, we adopted a new accounting standard applicable to intercompany asset transfers. As a result, the accumulated unrecognized deferred tax expense associated with historical intercompany transfers was recognized as a cumulative effect adjustment through retained earnings at that time. 2018 includes the tax benefit to establish the initial deferred tax asset from the intercompany transfer of a portion of the Asset Management business between the Aimco Operating Partnership and TRS entities.
(3)
Reflects revaluation of deferred tax assets and liabilities using the TRS entities’ lower effective tax rates resulting from the 2017 Act. Accounting for the tax effects of enactment of the 2017 Act was finalized during the year ended December 31, 2018.
(4)
2017 includes a $15.4 million valuation allowance against the deferred tax assets associated with rehabilitation tax credits due to the lower federal tax rate under the 2017 Act. This valuation allowance was reversed in 2018 as a result of the sale of our Asset Management business.
Dividends paid to holders of Common Stock
For the years ended December 31, 2018, 2017 and 2016, dividends per share held for the entire year were estimated to be taxable as follows:
 
2018
 
2017
 
2016
 
Amount
 
Percentage
 
Amount
 
Percentage
 
Amount
 
Percentage
Ordinary income
$
0.51

 
33.4
%
 
$
0.75

 
51.5
%
 
$
0.45

 
34.2
%
Capital gains
0.93

 
61.2
%
 
0.51

 
35.7
%
 
0.47

 
35.4
%
Qualified dividends
—

 
—
%
 
0.02

 
1.6
%
 
0.13

 
9.9
%
Unrecaptured Section 1250 gain
0.08

 
5.4
%
 
0.16

 
11.2
%
 
0.27

 
20.5
%
 
$
1.52

 
100.0
%
 
$
1.44

 
100.0
%
 
$
1.32

 
100.0
%