Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

v3.20.1
INCOME TAXES
3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
 
Income tax expense (benefit) consists of the following:
 
 
Three Months Ended  
 March 31,
 
 
2020

2019
Current:
 
 
 
 
Federal
 
$

 
$
(413
)
State and Local
 
49

 
79

Total Current Income Tax Expense (Benefit)
 
49

 
(334
)
Deferred:
 
 
 
 
Federal
 
(127,526
)
 
37,146

State and Local
 
(39,391
)
 
9,185

Total Deferred Income Tax Expense (Benefit)
 
(166,917
)
 
46,331

Total Income Tax (Benefit) Expense
 
$
(166,868
)
 
$
45,997


 
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.