AH Realty Trust, Inc.AHRT

AH Realty Trust, Inc. Income Taxes Disclosure

10-KFiled Feb 26, 20261 min read
Income Taxes from Discontinued Operations
 
The income tax provision (benefit) from discontinued operations for the years ended December 31, 2025, 2024, and 2023 comprised the following (in thousands):
 Years Ended December 31, 
 202520242023
Federal income taxes:         
Current$523 $(184)$(496)
Deferred(64)729 (559)
State income taxes:   
Current32 (23)(166)
Deferred(9)92 (108)
Income tax provision (benefit)
$482 $614 $(1,329)

As of December 31, 2025 and 2024, the Company had $1.5 million and $1.6 million, respectively, of net deferred tax assets representing net operating losses of the TRS that are being carried forward and basis differences in the assets of the TRS. The deferred tax assets are presented within other assets in the consolidated balance sheets.

Management has evaluated the Company’s income tax positions and concluded that the Company has no uncertain income tax positions as of December 31, 2025 and 2024. The Company is generally subject to examination by the applicable taxing authorities for the tax years 2020 through 2025. The Company does not currently have any ongoing tax examinations by taxing authorities.

Income tax benefit (provision) for continuing operations is immaterial.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 24, 2021
2019Feb 25, 2020
2018Feb 28, 2019
2017Feb 23, 2018
2016Mar 1, 2017
2015Mar 2, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

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