Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Taxes | |
| Income Taxes | 13. Income Taxes For the three and six months ended June 30, 2026 (loss) income before income taxes was $(203,733) and $11,840,394, respectively, while the (expense) benefit for income taxes for the three and six months ended June 30, 2026 was $(2,388) and $2,076,254, respectively. As a result of the Company’s termination of its election to be taxed as a REIT, the Company recognized net deferred tax assets and a corresponding income tax benefit of $3,902,878 in the three months ended March 31, 2026. The effective tax rate for the three months ended June 30, 2026 was 1.2%, which differed from the federal statutory rate of 21%, primarily due to deconsolidation of our DST subsidiary along with disposals of certain investment properties. The effective tax rate for the six months ended June 30, 2026 was (17.5%), which differed from the federal statutory rate of 21%, primarily due to establishing the net deferred tax assets upon our termination of our election to be taxed as a REIT partially offset by tax expense related to deconsolidation of our DST subsidiary along with disposal of certain investment properties. The Company evaluated the realizability of the net deferred tax assets and determined that no valuation allowance was required as of June 30, 2026, because it is more likely than not that the net deferred tax assets will be realized from projected future taxable income and no material uncertain tax positions were identified that would necessitate a valuation allowance. During the year ended December 31, 2025, the Company elected to be taxed as a REIT for federal income tax purposes and it did not generate any taxable income from its taxable REIT subsidiaries, accordingly no income tax expense was recorded. The Company terminated its election to be taxed as a REIT as of January 1, 2026. The Company has determined that it has no uncertain income tax positions that could have a material impact on the condensed consolidated financial statements. |