Income Taxes

12 Months Ended

Dec. 31, 2019

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 $1.44, $1.26 and $1.37 per share in 2019, 2018 and 2017, 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 $2.9 billion, respectively, at December 31, 2019 and $4.3 billion and $2.3 billion, respectively, at December 31, 2018. The tax basis of the Operating Partnership's assets (net of accumulated tax depreciation and amortization) and liabilities was approximately $4.7 billion and $2.9 billion, respectively, at December 31, 2019 and $4.2 billion and $2.3 billion, respectively, at December 31, 2018.

During the years ended December 31, 2019, 2018 and 2017, 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. Due to the passage of federal legislation commonly known as the "Tax Cuts and Jobs Act," which was signed into law on December 22, 2017, the taxable REIT subsidiary was required to decrease the deferred tax asset balance, which resulted in an increase to tax expense of $0.1 million in 2017.

The following table sets forth the Company's income tax expense/(benefit):



	Year Ended December 31,
	2019			2018			2017
Current tax expense/(benefit):
Federal	$	202		$	133		$	(177	)
State	148			112			105
	350			245			(72		)
Deferred tax expense/(benefit):
Federal	14			(95		)	223
State	(120		)	(68		)	(9		)
	(106		)	(163		)	214
Total income tax expense	$	244		$	82		$	142

The Company's net deferred tax liability was $0.1 million and $0.2 million as of December 31, 2019 and 2018, respectively. 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, 2019 and 2018, there were no unrecognized tax benefits. The Company is subject to federal, state and local income tax examinations by taxing authorities for 2016 through 2019. The Company does not expect that the total amount of unrecognized benefits will materially change within the next year.