v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

(11) Income Taxes

 

The following table presents the Company’s provision (benefit) for income taxes reflected as a component of income (loss):

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2026

 

2025

 

2026

 

2025

Total income tax expense (benefit)

 

$

1,315

 

 

 

$

(2,014

)

 

 

$

162

 

 

 

$

(3,619

)

 

Effective tax rate (ETR)

 

 

(25.6

)%

(1)

 

 

16.2

%

(1)

 

 

(1.2

)%

(1)

 

 

15.2

%

(1)
(1)
Lower than the U.S. federal statutory income tax rate of 21% primarily due to the impact of nondeductible expenses.

Tiptree sold its insurance and mortgage subsidiaries during the three months ended June 30, 2026. It had previously recorded deferred taxes on the outside basis on those investments which represented the tax that would be due, before consideration of loss carryforwards, when Tiptree sold its shares in these subsidiaries at their carrying values on Tiptree’s condensed consolidated balance sheet. The balance just prior to the sales was $130,022, an increase of $12,148 from the year ended December 31, 2025, of which $1,813 of benefit was recorded in OCI, and $13,961 of expense was recorded as a provision for income taxes in discontinued operations. As of June 30, 2026, the deferred tax liability relating to these investments has been brought to zero and a current tax payable of $204,760 has been established through the provision for income taxes in discontinued operations.