Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit)
Income tax (benefit) expense consists of the following:
Year Ended December 31,
2020 2019 2018
Current:
  Federal $ (2,197) $ 148  $ 6,146 
  State and Local 4,084  3,411  477 
    Total Current Income Tax Expense (Benefit) 1,887  3,559  6,623 
Deferred:
  Federal 17,516  28,939  (68,907)
  State and Local (2,487) 9,268  (11,147)
    Total Deferred Income Tax Expense (Benefit) 15,029  38,207  (80,054)
Total Income Tax (Benefit) Expense $ 16,916  $ 41,766  $ (73,431)
Schedule of Reported Provision for Income Taxes and the U.S. Federal Statutory Rate
The difference between New Residential’s reported provision for income taxes and the U.S. federal statutory rate of 21% is as follows:
December 31,
2020 2019 2018
Provision at the statutory rate 21.00  % 21.00  % 21.00  %
Non-taxable REIT income (26.30) % (16.26) % (25.44) %
State and local taxes 3.70  % 2.36  % (1.19) %
Change in valuation allowance —  % —  % (2.31) %
Change in federal tax rate —  % —  % —  %
Other 0.43  % 0.66  % (0.30) %
Total provision (1.17) % 7.76  % (8.24) %
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liability are presented below:
December 31,
2020 2019
Deferred tax assets:
Net operating losses and tax credit carryforwards(A)
$ 5,636  $ 79,897 
Basis Differences related to assets and investments
18,868  16,279 
Unrealized mark to market 75  10,084 
Other 630  1,194 
Total deferred tax assets 25,209  107,454 
Less valuation allowance —  — 
Net deferred tax assets $ 25,209  $ 107,454 
Deferred tax liabilities:
Mortgage servicing rights $ (16,189) $ (65,582)
Basis Differences related to assets and investments (12,539) (29,022)
Fixed asset depreciation (1,231) (4,181)
Other (3,109) — 
Total deferred tax (liability) $ (33,068) $ (98,785)
Net deferred tax assets (liability) $ (7,859) $ 8,669 
(A)As of December 31, 2020, New Residential’s TRSs had approximately $15.0 million of net operating loss carryforwards for federal and state income tax purposes which may be available to offset future taxable income, if and when it arises. Approximately, $13.8 million of these federal and state net operating loss carryforwards will begin to expire in 2034. The utilization of the net operating loss carryforwards to reduce future income taxes will depend on the TRSs ability to generate sufficient taxable income prior to the expiration of the carryforward period.
Schedule of Taxable Common Stock Distributions
Common stock distributions were taxable as follows:
Year Dividends
per Share
Ordinary
Income
Long-term
Capital
Gain
Return
of
Capital
2020(A)
$ 0.62  78.01  % —  % 21.99  %
2019(B)
1.87  77.53  % 15.82  % 6.65  %
2018(C)
1.60  78.03  % 1.03  % 20.94  %
(A)The entire $0.20 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021.
(B)The entire $0.50 per share dividend declared in December 2019 and paid in January 2020 is treated as received by stockholders in 2020.
(C)The entire $0.50 per share dividend declared in December 2018 and paid in January 2019 is treated as received by stockholders in 2019.

Series A Preferred stock distributions were as follows:
Year Dividends
per Share
Ordinary
Income
Long-term
Capital
Gain
Return
of
Capital
2020(A)
$ 1.88  100  % —  % —  %
2019 $ 0.69  84.18  % 15.82  % —  %
(A)The entire $0.47 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021.

Series B Preferred stock distributions were as follows:
Year Dividends
per Share
Ordinary
Income
Long-term
Capital
Gain
Return
of
Capital
2020(A)
$ 1.78  100  % —  % — 
2019 $ 0.45  84.18  % 15.82  % —  %
(A)The entire $0.45 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021.

Series C Preferred stock distributions were as follows:
Year Dividends
per Share
Ordinary
Income
Long-term
Capital
Gain
Return
of
Capital
2020(A)
$ 1.20  100  % —  % —  %
(A)The entire $0.40 per share dividend declared in December 2020 and paid in January 2021 is treated as received by stockholders in 2021.