Tax Matters |
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax Matters | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax Matters | Note 10. Tax Matters The Company has elected to be treated as a RIC for federal income tax purposes. In this regard, the Company accounts for income taxes using the asset and liability method prescribed by ASC Topic 740, Income Taxes (“ASC 740”). Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. As a RIC, the Company typically does not expect to incur material U.S. federal income taxes. However, the Company may choose to retain a portion of its calendar year income, which may result in the imposition of a federal excise tax. The Company operates in a manner to maintain its election to be subject to tax as a RIC and to eliminate corporate-level U.S. federal income tax (other than the 4% excise tax) by distributing sufficient investment company taxable income and capital gain net income (if any). As a result, the Company will have an effective tax rate equal to 0% before the excise tax and income taxes incurred. As such, a reconciliation of the differences between the Company’s reported income tax expense and its tax expense at the federal statutory rate of 21% is not meaningful. Because federal income tax regulations differ from U.S. GAAP, distributions in accordance with tax regulations may differ from net investment income and net realized gains recognized for financial reporting purposes. Differences between tax regulations and U.S. GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Statements of Assets and Liabilities to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. Taxable income for the periods presented appears as follows:
The Company’s taxable income for each period is an estimate and will not be finally determined until the Company files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried forward for distribution in the following period, may be different than this estimate. Further, the character of income and gains that the Company distributes is determined in accordance with U.S. income tax regulations that may differ from U.S. GAAP. Book and tax basis differences relating to Member distributions and other permanent book and tax differences are reclassified to paid-in capital. From time to time, the Company may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications to the Company’s estimates or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in U.S. GAAP or related guidance or interpretations thereof, limitations imposed on or expirations of the Company’s net operating losses and capital loss carryovers (if any) and changes in applicable tax law could result in increases or decreases in the Company’s NAV per Share, which could be material. |
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