Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 196

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 196
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,492 474,292 167,455 Revolving credit facilities108,623 121,124 51,814 Warehouse facilities66 — — Term notes payable12,426 28,994 19,514 Convertible senior notes18,199 18,815 19,612 Total interest expense607,806 643,225 258,395 Net interest (expense) income$(157,654)$(162,861)$37,145 

Note 22. Income Taxes

For the years ended December 31, 2024, 2023 and 2022, the Company qualified to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes its net taxable income to stockholders, and does not engage in prohibited transactions. The Company intends to distribute 100% of its REIT taxable income and comply with all requirements to continue to qualify as a REIT. The majority of states also recognize the Company’s REIT status. The Company’s TRSs file separate tax returns and are fully taxed as standalone U.S. C corporations. It is assumed that the Company will retain its REIT status and will incur no REIT level taxation as it intends to comply with the REIT regulations and annual distribution requirements.Certain activities the Company performs may produce income that will not be qualifying income for REIT purposes. These activities include the designated portion of MSR treated as normal mortgage servicing, residential mortgage loans, certain derivative financial instruments and other risk-management instruments. The Company has designated its TRSs to engage in these activities.

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

The following table summarizes the tax provision (benefit) recorded primarily at the taxable subsidiary level for the years ended December 31, 2024, 2023 and 2022:Year EndedDecember 31,(in thousands)202420232022Current tax provision (benefit) :Federal$9,541 $3,498 $— State3,351 4,976 (1,028)Total current tax provision (benefit) 12,892 8,474 (1,028)Deferred tax provision (benefit):Federal26,892 16,602