|3 Months Ended|
Mar. 31, 2020
|Income Tax Disclosure [Abstract]|
Income tax expense (benefit) consists of the following:
New Residential intends to qualify as a REIT for each of its tax years through December 31, 2020. 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 $176.2 million as of March 31, 2020, primarily related to unrealized losses and net operating loss carry forwards.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act provides economic relief to eligible businesses and individuals impacted by the novel coronavirus outbreak and includes numerous tax provisions. While the Company is continuing to monitor and evaluate the impact of the CARES Act and other COVID-19-related legislation, there was no material impact on the Company’s tax provision as of March 31, 2020.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef