Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

 v2.3.0.11
Income Taxes
 6 Months Ended
Jun. 30, 2011
Income Taxes  
Income Taxes

12.                               Income Taxes

 

We own a taxable REIT subsidiary (“TRS”) that is subject to Federal and state income taxes.  Our TRS’s provision for income tax consisted of the following (in thousands):

 

 

 

For the Three Months
Ended June 30,

 

For the Six Months
Ended June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

$

(4,119

)

$

11

 

$

(4,566

)

$

13

 

State

 

(910

)

2

 

(1,010

)

3

 

 

 

(5,029

)

13

 

(5,576

)

16

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

(10

)

(5

)

(8

)

35

 

State

 

(3

)

(1

)

(2

)

8

 

 

 

(13

)

(6

)

(10

)

43

 

Total income tax (benefit) expense

 

$

(5,042

)

$

7

 

$

(5,586

)

$

59

 

 

 

 

 

 

 

 

 

 

 

Reported on line entitled income tax (benefit) expense

 

$

(5,042

)

$

7

 

$

(5,586

)

$

48

 

Reported on line entitled gain on sale of real estate, net

 

—

 

—

 

—

 

11

 

Total income tax (benefit) expense

 

$

(5,042

)

$

7

 

$

(5,586

)

$

59

 

 

Items in our TRS contributing to temporary differences that lead to deferred taxes include depreciation and amortization, share-based compensation, certain accrued compensation, compensation paid in the form of contributions to a deferred nonqualified compensation plan, impairment losses and net operating losses that are not deductible until future periods.

 

Our TRS’s combined Federal and state effective tax rate was 38.6% for the three and six months ended June 30, 2011 and 2010.