v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
Holdings TRS and Observatory TRS are taxable entities and their consolidated provision for income taxes consisted of the following:
Year Ended December 31,
(amounts in thousands)202520242023
Current:
Federal$(1,016)$(1,044)$(783)
State and local(1,158)(1,368)(695)
Total current(2,174)(2,412)(1,478)
Deferred:
Federal(232)(297)(710)
State and local(152)21 (527)
Total deferred(384)(276)(1,237)
Income tax expense$(2,558)$(2,688)$(2,715)
Schedule of Actual Tax Provision Differed From Federal Statutory Corporate Rate
The effective income tax rate reconciliations are presented below:
Year Ended December 31,
2025
(amounts in thousands, except for percentage)AmountPercentage
U.S. federal statutory tax rate$(1,496)21.0 %
State and local income taxes, net of federal income tax effect(1)
(977)13.7 %
Nontaxable or nondeductible items and other adjustments(85)1.2 %
Effective tax rate(2)
$(2,558)35.9 %
(1) State and local taxes in New York made up the majority (greater than 50 percent) of the tax effect in this category.
(2) The effective income tax rate was 34.3% and 44.5% for the years ended December 31, 2024 and 2023, respectively.
The actual tax provision differed from that computed at the federal statutory corporate rate as follows:
Year Ended December 31,
(amounts in thousands)202520242023
Federal tax expense at statutory rate$(1,248)$(1,341)$(1,494)
State income tax expense, net of federal benefit(1,310)(1,347)(1,221)
Income tax expense$(2,558)$(2,688)$(2,715)