Current report filing

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2013
Income Taxes Tables  
Schedule of components of income tax expense

The provision for income taxes consists of the following:

               
    Year Ended December 31,  
    2013   2012  
    (in thousands)  
Current:              
Federal   $ 2,170   $  
State and Local     381      
Total Current Provision   $ 2,551   $  
               
Deferred              
Federal   $ (404 ) $  
State and Local     (47 )    
Total Deferred Provision   $ (451 ) $  
Total Provision for Income Taxes   $ 2,100   $  
Schedule of tax treatment of common stock dividend distribution
Common stock distributions relating to 2013, 2012, and 2011 were taxable as follows:
                           
        Ordinary   Long-term        
    Dividends Per Share   Income   Capital Gain   Return of Capital  
2013   $ 7.38 (A) 33.91 %   0.00 %   66.09 %  
2012   $ 0.84   100.00 %   0.00 %   0.00 %  
2011   $ 0.40   100.00 %   0.00 %   0.00 %  
     
  (A) Includes the distribution of New Residential (Note 4) common stock valued at $6.89 per share.
Schedule of effective income tax reconciliation
The difference between Newcastle’s reported provision for income taxes and the U.S. federal statutory rate of 35% is as follows:
                     
    December 31,  
    2013   2012   2011  
Provision at the statutory rate     35.00 %   35.00 %   35.00 %
Non-taxable REIT income     (33.88 %)   (35.00 %)   (35.00 %)
State and local taxes     0.21 %        
Other     0.40 %        
Total provision     1.73 %   0.00 %   0.00 %
Schedule of deferred tax assets

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets as of December 31, 2013 are presented below:

         
    December 31, 2013  
Deferred tax assets:        
Allowance for loan losses   $ 2,076  
Depreciation and amortization     94,880  
Leaseholds     6,489  
Accrued expenses     23,816  
Deposits     7,787  
Net operating losses     211,560  
Other     17,036  
Total deferred tax assets     363,644  
Less valuation allowance     (363,192 )
Net deferred tax assets   $ 452
Schedule of change in valuation allowance

The following table summarizes the change in the deferred tax asset valuation allowance:

         
Valuation allowance at December 31, 2012   $  
Increase due to business acquisitions     367,541  
Other decrease     (4,349 )
Valuation allowance at December 31, 2013   $ 363,192