Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 11. Income Taxes

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

	For the Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	—	$	—	$	—
State	385		680		3,361
Foreign	233		350		—
	618		1,030		3,361
Deferred:
Foreign	(817)		(1,971)		13,850
	(817)		(1,971)		13,850
	$	(199)	$	(941)	$	17,211

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,
	2022		2021		2020
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	(0.3)	%	(0.1)	%	(1.1)	%
Foreign taxes	0.4	%	0.3	%	(4.4)	%
Effective tax rate	0.1	%	0.2	%	(5.5)	%

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,
	2022		2021
Deferred tax assets:
Tax loss carryforwards	$	109,650	$	84,551
Other	7,134		4,844
	116,784		89,395
Valuation allowance	(116,784)		(89,395)
	—		—
Deferred tax liabilities:
Property basis difference	(5,947)		(6,263)
Puerto Rico deferred tax gain	(12,079)		(12,581)
Net deferred tax liabilities	$	(18,026)	$	(18,844)

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

At December 31, 2022 and 2021, our consolidated TRS had a net deferred tax asset, prior to any valuation allowance, of $111,148 and $84,973, 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, 2022 and 2021. As of December 31, 2022 and 2021, our consolidated TRS had net operating loss carryforwards for federal income tax purposes of approximately $437,606 and $334,686, respectively, which partially expire starting in 2025. At December 31, 2022 and 2021, we recorded a deferred tax liability of $13,658 and $12,581, respectively, 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.

At December 31, 2022 and 2021, we, excluding our subsidiaries, had net operating loss carryforwards for federal income tax purposes of approximately $545,828 and $423,852, respectively, of which certain losses incurred prior to 2018 partially expire starting 2028.