Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 155

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 155
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2023, and 2022.Table 23.2 – Provision for Income Taxes Years Ended December 31,(In Thousands)202420232022Current Provision for Income TaxesFederal$1,946 $20 $340 State3,911 92 496 Total Current Provision for Income Taxes5,857 112 836 Deferred Provision (Benefit From) for Income TaxesFederal11,635 1,977 (19,083)State1,345 (454)(1,673)Total Deferred Provision (Benefit From) for Income Taxes12,980 1,523 (20,756)Total Provision (Benefit From) for Income Taxes$18,837 $1,635 $(19,920)The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2024, 2023, and 2022.Table 23.3 – Reconciliation of Statutory Tax Rate to Effective Tax RateDecember 31, 2024December 31, 2023December 31, 2022Federal statutory rate21.0 %21.0 %21.0 %State taxes, net of federal tax effect, as applicable6.7 %51.7 %0.9 %Differences in taxable income from GAAP income(0.3)%(2.7)%(0.5)%Change in valuation allowance0.1 %— %— %REIT GAAP income or loss not subject to federal income tax(1.6)%(325.9)%(10.5)%Effective Tax Rate25.9 %(255.9)%10.9 %The December 31, 2023 effective tax rate is negative and appears outsized due to a relatively small consolidated GAAP loss and a provision for income taxes recorded against TRS GAAP income well in excess of the consolidated loss. 

We believe that we have met all requirements for qualification as a REIT for federal income tax purposes. Many requirements for qualification as a REIT are complex and require analysis of particular facts and circumstances. Often there is only limited judicial or administrative interpretive guidance and as such there can be no assurance that the Internal Revenue Service or courts would agree with our various tax positions. If we were to fail to meet all the requirements for qualification as a REIT and the requirements for statutory relief, we would be subject to federal corporate income tax on our taxable