Company: BHR-PD
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001574085-25-000024
Chunk: 276

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 276
---
 years. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes as well as to federal income and excise taxes on our undistributed taxable income.At December 31, 2024, 14 of our hotel properties were leased to TRS lessees and The Ritz-Carlton St. Thomas was owned by our USVI TRS. The TRS entities recognized net book income (loss) before income taxes of $9.6 million, $17.9 million and $25.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.The following table reconciles the income tax expense of the TRS entities at applicable statutory rates to the actual income tax expense recorded (in thousands):Year Ended December 31,202420232022Income tax (expense) benefit of the TRS entities at federal statutory income tax rate of 21% $(2,040)$(5,180)$(6,463)State income tax (expense) benefit, net of U.S. federal income tax benefit(81)(258)(1,961)State and local income tax (expense) benefit on pass-through entity subsidiaries(27)(20)(17)Gross receipts and margin taxes(88)(52)(69)Benefit of USVI Economic Development Commission credit1,559 1,511 3,358 Benefits of Puerto Rico tax incentives950 2,064 1,474 Effect of permanent differences(412)(229)— Other39 (46)126 Valuation allowance(742)(479)(491)Total income tax (expense) benefit$(842)$(2,689)$(4,043)The components of income tax expense are as follows (in thousands):Year Ended December 31,202420232022Current:Federal$(387)$(467)$(3,745)State68 (69)(247)Foreign(619)(824)— Total current income tax (expense) benefit(938)(1,360)(3,992)Deferred:Federal1 (14)(51)State— — — Foreign95 (1,315)— Total deferred income tax (expense) benefit96 (1,329)(51)Total income tax (expense) benefit$(842)$(2,689)$(4,043)The following table presents the U.S. and foreign earnings (losses) from continuing operations before income taxes (in thousands