What were the tax credits 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 tax credits for 2024 were 5. This figure is part of a table that outlines factors influencing the effective tax rate. The table also shows the federal statutory rate, state and local income taxes, and other items such as non-deductible compensation and goodwill impairment. These items are presented net of federal tax benefits. The tax credits are listed alongside other financial considerations that impact Corcoran's overall tax strategy.
The table provides a comparative view, including figures from 2023 and 2022 alongside the 2024 data. This allows potential franchisees to see how tax credits and other financial factors have trended over the three-year period. For instance, tax credits were 6 in 2023 and 7 in 2022, showing a slight decrease over time. The effective tax rate was 2% in 2024, 13% in 2023 and 19% in 2022.
Additionally, the FDD states that the company's deferred tax asset for tax credit carryforwards is primarily related to foreign tax credits which expire between 2024 and 2034. Due to the company's recent history of losses, the company increased the valuation allowance, primarily on foreign tax credits and state net operating losses. A prospective franchisee should consult with a financial advisor to understand the implications of these tax credits, deferred tax assets, and valuation allowances for their investment.