What were the other permanent differences for Corcoran in 2024?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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) |
| Effective tax rate | 2 % | 13 % | 19 % |
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the company had other permanent differences of (3) in 2024. This is in reference to a table that outlines the differences between the federal statutory rate and the effective tax rate for the company.
The table also includes other factors contributing to the differences between the federal statutory rate and the effective tax rate. These include state and local income taxes, non-deductible equity compensation, non-deductible executive compensation, goodwill impairment, uncertain tax positions, tax credits, and net change in valuation allowance.
Prospective franchisees should be aware of these differences as they can impact the overall financial performance and tax obligations of the franchise. Understanding these factors can help franchisees better plan and manage their finances.