Income Taxes
 9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
Note 14 - Income Taxes
 
    The following table reconciles our GAAP net income (loss) to estimated REIT taxable income (loss) for the three and nine months ended September 30, 2020 and September 30, 2019. 
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2020201920202019
GAAP net income (loss)$58,386 $(60,955)$(296,525)$(358,586)
Book to tax differences:
TRS (income) loss145 (27)76 (180)
Premium amortization expense(103)— (183)— 
Agency Securities, trading(12,149)— (20,060)— 
Credit Risk and Non-Agency Securities6,510 10,051 188,075 25,973 
Interest-Only Securities— — — 85 
U.S. Treasury Securities— 736 (21,357)(2,024)
Changes in interest rate contracts(29,199)88,733 334,312 442,554 
Credit loss expense— — 1,012 — 
Gain on Security Sales(9,468)(4,569)(138,802)(1,615)
Amortization of deferred hedging costs(45,458)(20,817)(106,618)(49,868)
Series B Cumulative Preferred Stock dividend - Called for redemption— — 1,375 — 
Other561 2 1,032 11 
Estimated REIT taxable income (loss)$(30,775)$13,154 $(57,663)$56,350 

    Interest rate contracts are treated as hedging transactions for U. S. federal income tax purposes. Unrealized gains and losses on open interest rate contracts are not included in the determination of REIT taxable income. Realized gains and losses on interest rate contracts terminated before their maturity are deferred and amortized over the remainder of the original term of the contract for REIT taxable income.
Net capital losses realizedAmountAvailable to offset capital gains through
2015$(5,182)2020
2016$(31,204)2021
2017$(7,375)2022
2018$(216,634)2023

    The Company's subsidiary, ARMOUR TRS, Inc. has made an election as a taxable REIT subsidiary (“TRS”). As such, the TRS is taxable as a domestic C corporation and subject to federal, state, and local income taxes based upon its taxable income. During the nine months ended September 30, 2020, we recorded $36 of income tax expense attributable to our TRS.
    
    The aggregate tax basis of our assets and liabilities was greater than our total Stockholders’ Equity at September 30, 2020 by approximately $412,720, or approximately $6.38 per common share (based on the 64,730 common shares then outstanding).

    We are required and intend to timely distribute substantially all of our REIT taxable income in order to maintain our REIT status under the Code. Total dividend payments to stockholders were $21,910 and $63,310 for the three and nine months ended September 30, 2020 (including the final dividend on the Series B Preferred Stock, called for redemption of $1,375 paid on February 27, 2020 to holders of record on February 15, 2020). For the three and nine months ended
September 30, 2019, total dividend payments to stockholders were $33,698 and $106,243. Our estimated REIT taxable income (loss) available for distribution as dividends was $(30,775) and $13,154 and $(57,663) and $56,350 for the three and nine months ended September 30, 2020 and September 30, 2019, respectively. Our REIT taxable income and dividend requirements to maintain our REIT status are determined on an annual basis. Dividends paid in excess of current tax earnings and profits for the year will generally not be taxable to common stockholders.

    Our management is responsible for determining whether tax positions taken by us are more likely than not to be sustained on their merits. We have no material unrecognized tax benefits or material uncertain tax positions.