Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

v3.19.3
INCOME TAXES
9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
 
Income tax expense (benefit) consists of the following:
 
 
Three Months Ended 
 September 30,

Nine Months Ended  
 September 30,
 
 
2019

2018

2019

2018
Current:
 
 
 
 
 
 
 
 
Federal
 
$
1,198

 
$
5,691

 
$
785

 
$
6,299

State and Local
 
14

 
(263
)
 
115

 
424

Total Current Income Tax Expense (Benefit)
 
1,212

 
5,428

 
900

 
6,723

Deferred:
 
 
 
 
 
 
 
 
Federal
 
(5,385
)
 
(1,201
)
 
14,762

 
(12,829
)
State and Local
 
(1,267
)
 
(664
)
 
3,318

 
149

Total Deferred Income Tax Expense (Benefit)
 
(6,652
)
 
(1,865
)
 
18,080

 
(12,680
)
Total Income Tax Expense (Benefit)
 
$
(5,440
)
 
$
3,563

 
$
18,980

 
$
(5,957
)

 
New Residential intends to qualify as a REIT for each of its tax years through December 31, 2019. A REIT is generally not subject to U.S. federal corporate income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements.
 
New Residential operates various securitization vehicles and has made certain investments, particularly its investments in MSRs (Note 5), Servicer Advance Investments (Note 6) and REO (Note 8), through taxable REIT subsidiaries (“TRSs”) that are subject to regular corporate income taxes which have been provided for in the provision for income taxes, as applicable.

New Residential has recorded a net deferred tax asset of approximately $43.4 million as of September 30, 2019, primarily related to unrealized gains and discount accruals offset by net operating loss carry forwards.