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BrightSpire Capital Inc

For the period ended Dec 31, 2023. Filed Feb 21, 2024.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 21, 2024

BRSP$3.28-2.7%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

15. Income Taxes

  1. Income Taxes

The Company is subject to income tax laws of the various jurisdictions in which it operates, including U.S. federal, state and local non-U.S. jurisdictions, primarily in Europe. The Company’s current primary sources of income subject to tax are income from certain PE investments and a real estate investment in Europe.

The following table provides a summary of the Company’s tax provisions (dollars in thousands):

Year Ended December 31,
202320222021
Current
Federal$(296)$(1,267)$(9,306)
State and local(219)(1,458)3,347
Foreign(1,587)(1,762)(402)
Total current tax benefit (expense)(2,102)(4,487)(6,361)
Deferred
Federal(20)516(383)
Foreign1,0601,531468
Total deferred tax benefit (expense)1,0402,04785
Total income tax benefit (expense)$(1,062)$(2,440)$(6,276)

Deferred Income Tax Assets and Liabilities

Deferred tax asset is included in other assets while deferred tax liability is included in accrued and other liabilities on the consolidated balance sheets.

The components of deferred tax assets and deferred tax liabilities arising from temporary differences are as follows (dollars in thousands):

December 31,
20232022
Deferred tax assets
Basis difference - investment in partnerships$7,511$7,956
Lease liability—corporate offices1,3801,624
Equity-based compensation99
Net operating and capital loss carryforwards(1)8,0141,862
Gross deferred tax asset16,91411,451
Valuation allowance(2)(13,793)(8,055)
Deferred tax assets, net of valuation allowance$3,121$3,396
Deferred tax liabilities
Basis difference - real estate(23,263)(25,173)
ROU lease asset—corporate offices(1,287)(1,552)
Other(24)(14)
Gross deferred tax liabilities(24,574)(26,739)
Net deferred tax liability$(21,453)$(23,343)

(1) As of December 31, 2023, deferred tax assets include $35.4 million of federal net operating loss carryforwards, of which $3.1 million begin to expire in 2036 and $32.3 million are carried forward indefinitely and $2.8 million of capital loss carryforwards that will begin to expire in 2026. As of December 31, 2022, deferred tax assets include $6.5 million of federal net operating loss carryforwards, of which $3.0 million begin to expire in 2036 and $3.5 million are carried forward indefinitely and $2.4 million of capital loss carryforwards that will expire in 2026.

(2) As of December 31, 2023, the Company had $5.8 million of deferred tax assets relating to basis difference - investment in partnerships and $8.0 million of deferred tax assets relating to net operating and capital loss carryforwards. As of December 31, 2022, the Company had $6.1 million of deferred tax assets relating to basis difference - investment in partnerships and $1.9 million of deferred tax assets relating to net operating and capital loss carryforwards.

Effective Income Tax

The Company’s income tax expense varied from the amount computed by applying the statutory income tax rate to income before income taxes. A reconciliation of the statutory U.S. income tax to the Company’s effective income tax is presented as follows (dollars in thousands):

Year Ended December 31,
202320222021
Pre-tax income attributable to taxable entities$4,646$10,045$22,077
Federal tax expense at statutory tax rate (21%)9762,1094,636
State and local taxes, net of federal income tax expense(13)—81
Permanent adjustments(15)(155)—
Adjustments for foreclosure property—(464)479
Foreign income tax differential3312(4)
Return to provision1282,313(1)
Valuation allowance, net5,737(4,717)1,365
Adjustments to investment in partnership basis differences(6,427)——
Adjustments to federal tax attributes for disposed investments740——
Other(97)3,342(280)
Income tax expense$1,062$2,440$6,276

Tax Examinations and Uncertainty in Income Tax

The Company is no longer subject to U.S. federal, state and local tax examinations by tax authorities for years prior to 2017. There were no material uncertain tax positions as of December 31, 2023 and December 31, 2022. For the years ended December 31, 2023, 2022 and 2021, the Company hasnot recognized any interest or penalties related to uncertain tax positions.

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.