Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

14. INCOME TAXES

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Current Provision:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

3,417

 

 

$

1,309

 

 

$

1,225

 

State and local

 

 

2,605

 

 

 

1,856

 

 

 

2,378

 

Total Current Provision

 

 

6,022

 

 

 

3,165

 

 

 

3,603

 

Deferred Provision:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

611

 

 

 

1,513

 

 

 

1,014

 

State and local

 

 

290

 

 

 

716

 

 

 

561

 

Total Deferred Provision

 

 

901

 

 

 

2,229

 

 

 

1,575

 

Total Provision for Income Taxes

 

$

6,923

 

 

$

5,394

 

 

$

5,178

 

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their bases for income tax purposes.

As of December 31, 2021 and 2020, the Company had a net deferred tax asset of $10,702 and $11,305, respectively.

A summary of deferred tax assets and liabilities as follows:

 

 

 

As of December 31,

 

 

 

2021

 

 

2020

 

Deferred tax assets

 

 

 

 

 

 

 

 

Intangible assets

 

$

12,660

 

 

$

13,032

 

Deferred leases

 

 

443

 

 

 

809

 

Total deferred tax assets

 

$

13,103

 

 

$

13,841

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

Intangible assets

 

$

142

 

 

$

201

 

Right of use assets

 

 

357

 

 

 

674

 

Investment on underlying SLP partnership

 

 

1,863

 

 

 

1,634

 

Other

 

 

39

 

 

 

27

 

Total deferred tax liabilities

 

$

2,401

 

 

$

2,536

 

Net deferred tax assets (liabilities)

 

$

10,702

 

 

$

11,305

 

The following table reconciles the provision for income taxes to the U.S. Federal statutory tax rate:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Statutory U.S. federal income tax rate

 

 

21.00

 %

 

 

21.00

 %

 

 

21.00

 %

Income passed through to Partners

 

 

(7.05

)%

 

 

(7.10

)%

 

 

(7.78

)%

State and local income taxes

 

 

7.56

 %

 

 

9.32

 %

 

 

12.01

 %

Permanent items

 

 

(0.03

)%

 

 

(0.13

)%

 

 

(0.44

)%

Other

 

 

0.24

 %

 

 

0.49

 %

 

 

0.36

 %

Effective income tax rate

 

 

21.72

 %

 

 

23.58

 %

 

 

25.15

 %

As of December 31, 2021, the Company had net tax receivables of $641 which consisted of net federal and state and local tax receivables of ($45) and $686, respectively. As of December 31, 2020, the Company had net tax receivables of $1,653 which consisted of net federal and state and local tax receivables of $949 and $704, respectively.

Of the total net deferred taxes at December 31, 2021 and 2020, $31 and $30, respectively, of the net deferred tax liabilities relate to non-controlling interests. These amounts are included in deferred tax and other liabilities on the Consolidated Statement of Financial Position, respectively.

In the normal course of business, the Company is subject to examination by federal, state, and local tax regulators. As of December 31, 2021, the Company’s U.S. federal income tax returns for the years 2018 through 2021 are open under the normal three-year statute of limitations and therefore subject to examination.

The guidance for accounting for uncertainty in income taxes prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company does not believe that it has any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. Furthermore, the Company does not have any material uncertain tax positions at December 31, 2021 and 2020.