Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 198

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 198
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. The utilization of the net capital loss carryforwards will depend on the REIT’s ability to generate sufficient net capital gains prior to the expiration of the carryforward period.

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Table of ContentsTWO HARBORS INVESTMENT CORP.Notes to the Consolidated Financial Statements

The following is a reconciliation of the statutory federal rate to the effective rates for the years ended December 31, 2024, 2023 and 2022:Year EndedDecember 31,202420232022(dollars in thousands)AmountPercentAmountPercentAmountPercentProvision for (benefit from) income taxes at statutory federal tax rate$72,398 21 %$(17,513)21 %$68,135 21 %State taxes, net of federal benefit, if applicable8,027 3 %2,358 (3)%10,478 3 %Permanent differences in taxable income from net income for U.S. GAAP purposes21,794 6 %65,670 (79)%(93)— %REIT (income) loss not subject to corporate income tax(55,633)(16)%(27,537)33 %25,693 8 %Provision for income taxes/ effective tax rate(1)$46,586 14 %$22,978 (28)%$104,213 32 %____________________(1)The provision for income taxes is primarily recorded at the taxable subsidiary level.The Company’s permanent differences in taxable income from net income (loss) for U.S. GAAP purposes in the years ended December 31, 2024 and 2023 were primarily due to dividends paid from the Company’s TRSs to the REIT. Additionally, the Company’s recurring permanent differences in taxable income from net income (loss) for U.S. GAAP purposes in the years ended December 31, 2024, 2023 and 2022 were due to state taxes, net of federal benefit in the Company’s TRSs, the dividends paid deduction for tax, amortization of goodwill for tax and a difference in the compensation expense related to officer’s compensation limitation and restricted stock dividends and vesting.The Company’s consolidated balance sheets as of December 31, 2024 and December 31, 2023 contain the following current and deferred tax liabilities and assets, which are included in other assets and other liabilities, and are recorded at the taxable subsidiary level:(in thousands)December