Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 282

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 282
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 net deferred tax assets is dependent upon the generation of sufficient taxable income.

FREDDIE MAC  |  2024 Form 10-K187

Financial Statements                                 Notes to Consolidated Financial Statements | Note 13

The table below presents the balance of significant deferred tax assets and liabilities at December 31, 2024 and December 31, 2023. The valuation allowance relates to capital loss carryforwards included in Other items, net that we expect to expire unused.Table 13.3 - Deferred Tax Assets and Liabilities(In millions)December 31, 2024December 31, 2023Deferred tax assets:Deferred fees$1,699 $1,821 Basis differences related to derivative instruments437 1,042 Credit related items and allowance for loan losses1,360 863 Basis differences related to assets held-for-investment and held-for-sale980 696 Other items, net606 439 Total deferred tax assets5,082 4,861 Deferred tax liabilities:Basis differences related to fair value hedge accounting(30)(749)Other items, net(17)(18)Total deferred tax liabilities(47)(767)Valuation allowance(17)(18)Deferred tax assets, net$5,018 $4,076 

Valuation AllowanceA valuation allowance is recorded to reduce the net deferred tax asset when it is more likely than not that all or part of our tax benefits will not be realized. On a quarterly basis, we determine whether a valuation allowance is necessary. In doing so, we consider all evidence available, both positive and negative, in determining whether, based on the weight of the evidence, it is more likely than not that the net deferred tax asset will be realized.We are not permitted to consider in our analysis the impacts proposed legislation may have on our business because the timing and certainty of those actions are unknown and beyond our control.Based on all positive and negative evidence available at December 31, 2024, we determined that it is more likely than not that our net deferred tax assets, except for the deferred tax asset related to our capital loss carryforwards, will be realized. A valuation allowance of $17 million has been recorded against our capital loss carryforward deferred tax asset.Unrecognized Tax BenefitsWe recognize a tax position taken or expected to be taken (and any associated interest and penalties) if it is more likely than not that it will be sustained upon examination, including resolution of any related appeals or litigation