Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 125

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 8
Chunk 125
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15,724 Total general and administrative expenses$59,462 $82,204 

23.    Income TaxesThe provision (benefit) for income taxes related to continuing operations consisted of the following (in thousands): For the year ended December 31, 2024For the year ended December 31, 2023Current expense (benefit)Federal$(13)$85 Deferred expense (benefit)Federal2,010 (508)State401 (170)Subtotal2,411 (678)Provision (benefit) for income taxes$2,398 $(593)

156

Finance of America Companies Inc.Notes to Consolidated Financial Statements

The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate (dollars in thousands):For the year ended December 31, 2024For the year ended December 31, 2023Tax provision (benefit) at federal statutory rate$8,991 $(35,037)Effect of:Noncontrolling interest(4,373)21,834 Permanent differences513 1,036 State taxes401 (225)Valuation allowance(2,458)13,042 Other tax adjustments(676)(1,243)Provision (benefit) for income taxes$2,398 $(593)Effective tax rate5.60 %0.36 %The effective tax rate is calculated by dividing the provision (benefit) for income taxes by net income (loss) from continuing operations before income taxes. The Company’s effective tax rate on continuing operations for the year ended December 31, 2024 differs from the U.S. federal statutory rate primarily due to income attributable to noncontrolling interests, state statutory income tax rates, and the impact of discrete tax items, which includes a $2.5 million benefit associated with a valuation allowance previously recorded against deferred tax assets, including NOL carryforwards and other deferred tax assets.The Company’s effective tax rate on continuing operations for the year ended December 31, 2023 differs from the U.S. federal statutory rate primarily due to income attributable to noncontrolling interests, state statutory income tax rates, and the impact of discrete tax items, which includes a $13.0 million charge associated with the recording of a valuation allowance against deferred tax assets, including NOL carryforwards and other deferred tax assets.FOA is taxed as a corporation and is subject to U.S. federal