Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 153

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 153
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, 2024December 31, 2023Deferred Tax AssetsNet operating loss carryforward – state$98,290 $98,442 Net capital loss carryforward – state19,459 18,191 Net operating loss carryforward – federal13,753 21,398 Net capital loss carryforward – federal116 59 Allowances and accruals1,679 1,680 Goodwill and intangible assets25,298 26,192 Other1,685 1,644 Total Deferred Tax Assets160,280 167,606 Deferred Tax LiabilitiesReal estate assets(4,263)(979)Mortgage servicing rights(9,304)(7,284)Interest rate agreements(1,693)(2,237)Tax effect of unrealized (gains) – OCI(13)— Total Deferred Tax Liabilities(15,273)(10,500)Valuation Allowance(117,862)(116,991)Total Net Deferred Tax Asset, net of Valuation Allowance$27,145 $40,115 The deferred tax assets and liabilities reported above, with the exception of the state net operating loss ("NOL") and capital loss carryforwards, relate solely to our TRS. For state purposes, the REIT files a unitary combined return with its TRS. Because the REIT may have state taxable income apportioned to it from the activity of its TRS, we report the entire combined unitary state NOL and capital loss carryforwards as deferred tax assets, including the carryforwards allocated to the REIT.Realization of our deferred tax assets ("DTAs") at December 31, 2024, is dependent on many factors, including generating sufficient taxable income prior to the expiration of NOL carryforwards (where applicable) and generating sufficient capital gains in future periods prior to the expiration of capital loss carryforwards. We determine the extent to which realization of the deferred assets is not assured and establish a valuation allowance accordingly. We closely analyzed our estimate of the realizability of our net deferred tax assets in whole and in part at December 31, 2024 and 2023. The Company evaluates its deferred tax assets each period to determine if a valuation allowance is required based on whether it is "more likely than not" that some portion of the deferred tax assets would not be realized. This evaluation requires significant judgment and changes to our assumptions could result in a material change in the valuation allowance.