Company: BHR-PD
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001574085-25-000024
Chunk: 278

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 278
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.S. federal income tax purposes of $65.3 million, of which $45.8 million is subject to expiration and will begin to expire in 2025. The remainder was generated after December 2017 and is not subject to expiration under the Tax Cuts and Jobs Act. $45.8 million of net operating loss carryforwards are attributable to acquired subsidiaries and are subject to substantial limitation on their use. At December 31, 2024, Braemar Hotels & Resorts Inc., our REIT, had net operating loss carryforwards for U.S. federal income tax purposes of $109.7 million based on the latest filed tax return. Of this amount, $2.2 million is subject to expiration in 2033. The remainder is not subject to expiration under the Tax Cuts and Jobs Act. We do not recognize deferred tax assets and a valuation allowance for the REIT since the REIT distributes its taxable income as dividends to stockholders, and in turn, the stockholders incur income taxes on those dividends.The following table summarizes the changes in the valuation allowance (in thousands):Year Ended December 31,202420232022Balance at beginning of year$16,169 $18,627 $17,343 Additions327 — 1,284 Deductions— (2,458)— Balance at end of year$16,496 $16,169 $18,627 The USVI TRS operates under a tax holiday in the U.S. Virgin Islands, which is effective through December 31, 2028, and may be extended if certain additional requirements are satisfied. The tax holiday is conditional upon our meeting certain employment and investment thresholds. The impact of this tax holiday decreased current foreign taxes by $2.0 million, $2.7 million and $3.4 million for the years ended December 31, 2024, 2023 and 2022, respectively. The benefit of the tax holiday on 

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BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

net income (loss) per share was approximately, $0.03, $0.04 and $0.05 for the years ended December 31, 2024, 2023 and 2022, respectively.In 2022, we acquired The Ritz-Carlton Reserve Dorado Beach in Dorado, Puerto