Creative Media & Community Trust Corp - 10-K filing on 2014-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Reconciliation of Net Income to REIT Taxable Income

The following reconciles net income (loss) to REIT taxable income (loss):


	Years Ended December 31,
	2013		2012		2011
	(In thousands)
Net income (loss)	$	2,067	$	(2,179)	$	3,647
Book/tax differences:
Gains related to real estate		(1,537)		-		(235)
Strategic alternatives		-		(678)		678
Impairment losses		116		300		804
Transaction costs		2,789		-		-
Severance accrual (payments)		(1,806)		1,777		(100)
Amortization and accretion		(100)		(188)		(68)
Loan valuation		(59)		1,403		184
Other, net		99		157		8

Subtotal		1,569		592		4,918
Adjustment for TRS net income, net of tax		(2,101)		(840)		(131)
Dividend distribution from TRS		-		-		1,000

REIT taxable income (loss)	$	(532)	$	(248)	$	5,787


Distributions declared	$	5,299	$	6,353	$	6,767

Basic weighted average common shares outstanding		10,595		10,585		10,570

Dividends Per Share

Dividends per share for dividend reporting purposes were as follows:


	Years Ended December 31,
	2013				2012				2011
	Amount Per Share		Percent		Amount Per Share		Percent		Amount Per Share		Percent
Non-qualified dividends	$	-		-	$	-		-	$	0.477		74.53%
Qualified dividends		-		-		-		-		0.095		14.78%
Non-taxable return of capital		0.500		100.00%		0.600		100.00%		0.068		10.69%

	$	0.500		100.00%	$	0.600		100.00%	$	0.640		100.00%

Income Tax Provision (Benefit)

Income tax provision related to the TRS’s consisted of the following:


	Years Ended December 31,
	2013		2012		2011
	(In thousands)
Federal:
Current provision	$	1,041	$	821	$	483
Deferred provision (benefit)		171		(256)		(369)

Income tax provision	$	1,212	$	565	$	114

Reconciliation of TRS Income Tax Attributable to Net Income (loss)

The reconciliation of TRS income tax attributable to income (loss) from continuing operations computed at Federal statutory rates to income tax provision was as follows:


	Years Ended December 31,
	2013		2012		2011
	(In thousands)
Income (loss) from continuing operations before income taxes for TRS’s	$	3,373	$	1,628	$	245

Expected Federal income tax provision	$	1,147	$	553	$	83
Preferred dividend of subsidiary		31		31		31
Change in valuation allowance		28		-		-
Other adjustments		6		(19)		-

Income tax provision	$	1,212	$	565	$	114

Components of Net Deferred Tax Asset

The components of our net deferred tax asset were as follows:


	December 31,
	2013		2012
	(In thousands)
Deferred tax assets:
Secured borrowings - government guaranteed loans	$	1,028	$	1,054
Retained interests in transferred assets		359		387
Servicing asset		247		268
Net operating losses		28		25
Other		84		69

Total gross deferred tax assets		1,746		1,803
Valuation allowance		28		-

		1,718		1,803

Deferred tax liabilities:
Loans receivable		247		177

Total gross deferred tax liabilities		247		177


Deferred tax asset, net	$	1,471	$	1,626