v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Prior to EQC’s dissolution on June 13, 2025, we were a REIT under the Internal Revenue Code of 1986, as amended, and were generally not subject to federal and state income taxes provided we distributed our taxable income to our shareholders and met other requirements for qualifying as a REIT. We are also subject to certain state and local taxes without regard to our REIT status. As a grantor trust, EQC LT is not an income tax payer. EQC LT passes its taxable income or loss to the holders of the Units.
Our provision for income taxes consists of the following (in thousands):
Ten Months Ended October 31,
2024
Current:
State and local
$(486)
Income tax (expense)$(486)
During the ten months ended October 31, 2024, we recorded expense of $0.4 million related to uncertain tax positions, as part of our income tax provision.
A reconciliation of our effective tax rate and the U.S. Federal statutory income tax rate is as follows:
 Year Ended September 30,Year Ended December 31,
 20252024
Taxes at statutory U.S. federal income tax rate— %21.00 %
Dividends paid deduction and net operating loss utilization— %(21.00)%
Federal taxes— %— %
State and local income taxes— %1.53 %
Effective tax rate— %1.53 %
At December 31, 2024, we had a federal net operating loss, or NOL, carryforward of $29 million. The carryforward was not used prior to the dissolution of the REIT on June 13, 2025, and does not pass to EQC LT.