Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

The provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2024		2023		2022
Current:
U.S. federal	$	22,931	$	28,317	$	38,954
U.S. state and local	9,748		11,634		21,394
Foreign	10,343		3,881		1,044
UBT	1,714		2,466		5,161
Total	$	44,736	$	46,298	$	66,553
Deferred:
U.S. federal	2,660		(2,592)		(18,165)
U.S. state and local	222		(2,074)		(5,974)
Foreign	(2,275)		(91)		(131)
UBT	440		(438)		(229)
Total	$	1,047	$	(5,195)	$	(24,499)
Provision for income taxes	$	45,783	$	41,103	$	42,054

Schedule of Difference Between Actual Income Tax Expense and the Amount Calculated Utilizing the U.S. Federal Statutory Rates

Differences between Newmark’s actual income tax expense and the amount calculated utilizing the U.S. federal statutory rates were as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Tax expense at federal statutory rate	$	27,567	$	21,728	$	32,467
Non-controlling interest	(10,246)		(5,909)		(11,054)
Incremental impact of foreign taxes compared to the federal rate	(3,723)		(2,127)		(270)
Other permanent differences	2,602		(829)		(3,182)
U.S. state and local taxes, net of U.S. federal benefit	6,098		5,872		4,258
New York City UBT	1,762		1,041		1,045
Section 162(m) compensation deduction limitation	8,149		5,806		1,519
Revaluation of deferred taxes related to ownership changes	2,134		2,752		5,641
Other rate change	581		(1,408)		(594)

Valuation allowance	7,904		6,881		9,985
Prior year true ups	3,901		7,439		3,232
Windfall Tax Benefit	(4,201)		828		(2,088)
Uncertain Tax Positions	3,468		—		—
Other	(213)		(971)		1,095
Provision for income tax	$	45,783	$	41,103	$	42,054

Schedule of Deferred Tax Assets and Liabilities

Significant components of Newmark’s deferred tax asset and liability consisted of the following (in thousands):


	December 31,
	2024		2023
Deferred tax asset
Basis difference of investments	$	36,266	$	42,734
Deferred compensation	130,510		125,304
Other deferred and accrued expenses	11,576		15,944
Net operating loss and credit carry-forwards	37,599		22,379
Other	1,238		—
Total deferred tax asset	217,189		206,361
Valuation Allowance	(38,261)		(25,385)
Deferred tax asset, net of allowance	$	178,928	$	180,976
Deferred tax liability
Depreciation and amortization	80,016		77,469
Other	—		3,278
Deferred tax liability(1)	$	80,016	$	80,747
Net deferred tax asset	$	98,912	$	100,229

(1)Before netting within tax jurisdictions.

Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning to the ending amounts of gross unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):


Balance, January 1, 2022	$	—

Balance, December 31, 2022	$	—
Balance, December 31, 2023	—
Increases related to current year	2,577
Balance, December 31, 2024	$	2,577