What was the non-deductible executive compensation for Corcoran in 2022?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Federal statutory rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 21 % | 21 % | 21 % | |
| State and local income taxes, net of federal tax benefits . . . . . . . . . . . . . . . . . . | 5 | 1 | 3 | |
| Non-deductible equity compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1) | (1) | — | |
| Non-deductible executive compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (4) | (4) | (1) | |
| Goodwill impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | (5) | (8) | |
| Uncertain tax positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | — | (1) | |
| Tax credits (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5 | 6 | 7 | |
| Net change in valuation allowance (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | ||||
| (21) | (5) | — | ||
| Other permanent differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (3) | — | (2) |
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the non-deductible executive compensation for the year ended December 31, 2022, was (1). The FDD does not specify the units, but given the context of the table, it is reasonable to assume this is in millions of dollars. Therefore, the non-deductible executive compensation was approximately $1 million.
Non-deductible expenses can arise from various factors, such as exceeding IRS compensation limits or specific types of compensation arrangements that do not qualify for a deduction. For a prospective Corcoran franchisee, this figure provides insight into the financial management and tax strategies of the company. It's important to note that non-deductible expenses impact the company's overall tax liability and profitability.
Understanding the reasons behind non-deductible executive compensation can offer a more comprehensive view of Corcoran's financial health. A potential franchisee might want to inquire about the specific nature of these non-deductible expenses to assess any potential financial implications or risks associated with the franchise.