What was the deferred income tax expense (benefit) for Remax in 2022?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
uity-based compensation | 24,761 | — | 24,761 | | Payroll taxes related to net settled restricted stock units | (6,415) | — | (6,415) | | Member distributions | (78,393) | — | (78,393) | | Other | (146) | — | (146) | | Balances, December 31, 2022 | $ 3,685 | $ (1,609) | $ 2,076 | | Net income (loss) | (61,229) | — | (61,229) | | Change in accumulated other comprehensive income (loss) | — | 1,148 | 1,148 | | Member contribution of equity-based compensation | 17,018 | — | 17,018 | | Payroll taxes related to net settled restricted stock units | (4,273) | — | (4,273) | | Member distributions | (33,565) | — | (33,565) | | Other | (240) | — | (240) | | Balances, December 31, 2023 | $ (78,604) | $ (461) | $ (79,065) | | Net income | 11,293 | — | 11,293 | | Change in accumulated other comprehensive income (loss) | — | (4,213) | (4,213) | | Member contribution of equity-based compensation | 15,563 | — | 15,563 | | Payroll taxes related to net settled restricted stock units | (2,988) | — | (2,988) | | Member distributions | (8,450) | — | (8,450) | | Other | 87 | — | 87 | | Balances, December 31, 2024 | $ (63,099) | $ (4,674) | $ (67,773) |
(A Wholly Owned Subsidiary of RMCO, LLC) Consolidated Statements of Cash Flows (in thousands)
| Year Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ | 11,293 | $ | (61,229) | $ 20,714 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
| Depreciation and amortization | 29,551 | 32,387 | 35,742 | ||
| Equity-based compensation expense | 17,553 | 18,106 | 20,915 | ||
| Bad debt |
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the deferred income tax expense (benefit) for the year 2022 was ($1,690). This figure is part of the adjustments made to reconcile net income (loss) to net cash provided by operating activities.
Deferred income taxes arise from temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements. A deferred tax expense indicates that the company expects to pay more in taxes in the future due to these temporary differences, while a deferred tax benefit suggests the opposite.
For a prospective Remax franchisee, understanding these figures provides insight into the financial management and tax strategies of the company. While this specific line item may not directly impact day-to-day operations, it reflects the overall financial health and planning of Remax. Reviewing these figures over several years, as presented in the table, can reveal trends and potential future tax implications.