Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Note 10. Income Taxes

Our provision (benefit) for income taxes consists of the following:

	For the Year Ended December 31,
	2020		2019		2018
Current:
Federal	$	—	$	—	$	—
State	3,361		2,327		1,575
Foreign	—		593		667
	3,361		2,920		2,242
Deferred:
Foreign	13,850		(127)		(1,047)
	13,850		(127)		(1,047)
	$	17,211	$	2,793	$	1,195

A reconciliation of our effective tax rate and the current U.S. Federal statutory income tax rate is as follows:

	For the Year Ended December 31,
	2020		2019		2018
Taxes at statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Nontaxable income of SVC	(21.0)	%	(21.0)	%	(21.0)	%
State and local income taxes, net of federal tax benefit	(1.1)	%	0.7	%	0.8	%
Foreign taxes	(4.4)	%	0.1	%	(0.2)	%
Effective tax rate	(5.5)	%	0.8	%	0.6	%

Deferred income tax balances generally reflect the net tax effects of temporary differences between the carrying amounts of certain of our assets and liabilities in our consolidated balance sheets and the amounts used for income tax purposes and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Significant components of our deferred tax assets and liabilities are as follows:

	As of December 31,
	2020		2019
Deferred tax assets:
Tax loss carryforwards	$	42,940	$	44,285
Other	3,175		3,612
	46,115		47,897
Valuation allowance	(46,115)		(47,897)
	—		—
Deferred tax liabilities:
Property basis difference	(6,682)		(6,996)
Puerto Rico deferred tax gain	$	(13,850)	$	—
Net deferred tax liabilities	$	(20,532)	$	(6,996)

Net deferred tax liabilities are included in accounts payable and other liabilities in our consolidated balance sheets.

The following table provides a reconciliation of the beginning and ending balances of gross unrecognized tax benefits from uncertain tax positions in accordance with ASC 740-10-50:

Gross Unrecognized Tax Benefits
As of December 31, 2019	Current Period Increase	As of December 31, 2020
$—	$2,531	$2,531

At December 31, 2020 and 2019, our consolidated TRS had a net deferred tax asset, prior to any valuation allowance, of $40,879 and $42,434, respectively, which consists primarily of the tax benefit of net operating loss carryforwards and tax credits. Because of the uncertainty surrounding our ability to realize the future benefit of these assets, we have provided a 100% valuation allowance as of December 31, 2020 and 2019. As of December 31, 2020, our consolidated TRS had net operating loss carryforwards for federal income tax purposes of approximately $161,702 which do not expire. We recorded a $13,850 deferred tax liability as a result of the book value to tax basis difference related to the accounting of an insurance settlement in 2020. See Note 4 for further information regarding this insurance settlement.