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## 23. Income tax recovery (continued): 

In respect of assets and liabilities of the REIT, its subsidiary trust and flow through entities, the net book value for accounting purposes of those net assets exceeds their tax basis by an amount of approximately $515,000 (2009 - $521,000). 

The SIFT tax effects of temporary differences that give rise to significant portions of the future income tax assets and liabilities in 2009 are as follows: 

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At December 31, 2010, the U.S. subsidiaries had accumulated net operating losses and deferred interest deductions available for carryforward for income tax purposes of approximately $113,158 (2009 - $105,838). The losses expire between 2018 and 2030. The deferred interest deductions do not generally expire. The net future tax assets of these corporate subsidiaries of $50,221 (2009 - $54,204) consist of net operating losses, deferred interest deductions and tax and book basis differences relating to U.S. income properties and accrued rent receivable against which a valuation allowance of $50,221 (2009 - $54,204) has been recorded. 

