|9 Months Ended|
Sep. 30, 2021
|Income Tax Disclosure [Abstract]|
|INCOME TAXES||INCOME TAXES
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, 2021. 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 business segments, including servicing, origination, and MSR related investments, 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. Refer to Note 3 for further details.
As of September 30, 2021, New Residential recorded a net deferred tax liability of $407.6 million, including $280.0 million of deferred tax liability recorded as part of the purchase price allocation related to the Caliber acquisition (Note 1). The deferred tax liability of $407.6 million is primarily composed of deferred tax liabilities generated through the deferral of gains from loans sold by the origination business and changes in fair value of MSRs, loans, and swaps held within taxable entities.
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://www.xbrl.org/2003/role/disclosureRef