Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

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

	Year Ended December 31,
	2023		2022		2021
Current:
U.S. federal	$	28,317	$	38,954	$	93,368
U.S. state and local	11,634		21,394		28,392
Foreign	3,881		1,044		258
UBT	2,466		5,161		2,291
Total	$	46,298	$	66,553	$	124,309
Deferred:
U.S. federal	(2,592)		(18,165)		81,645
U.S. state and local	(2,074)		(5,974)		34,675
Foreign	(91)		(131)		(38)
UBT	(438)		(229)		2,367
Total	$	(5,195)	$	(24,499)	$	118,649
Provision for income taxes	$	41,103	$	42,054	$	242,958

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,
	2023		2022		2021
Tax expense at federal statutory rate	$	21,728	$	32,467	$	256,430
Non-controlling interest	(5,909)		(11,054)		(57,269)
Incremental impact of foreign taxes compared to the federal rate	(2,127)		(270)		(557)
Other permanent differences	(1)		(5,270)		850
U.S. state and local taxes, net of U.S. federal benefit	5,872		4,258		58,866
New York City UBT	1,041		1,045		4,658
Section 162(m) compensation deduction limitation	5,806		1,519		9,227
Revaluation of deferred taxes related to ownership changes	2,752		5,641		(26,159)
Other rate change	(1,408)		(594)		5,249
Valuation allowance	6,881		9,985		5,920
Prior year true ups	7,439		3,232		(6,408)
Other	(971)		1,095		(7,849)
Provision for income tax	$	41,103	$	42,054	$	242,958

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,
	2023		2022
Deferred tax asset
Basis difference of investments	$	42,734	$	43,122
Deferred compensation	125,304		116,934
Other deferred and accrued expenses	15,944		13,846
Net operating loss and credit carry-forwards	22,379		16,126
Total deferred tax asset	206,361		$	190,028
Valuation Allowance	(25,385)		(18,504)
Deferred tax asset, net of allowance	180,976		$	171,524
Deferred tax liability
Depreciation and amortization	77,469		76,835
Other	3,278		—
Deferred tax liability(1)	80,747		$	76,835
Net deferred tax asset	$	100,229	$	94,689

(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, 2023, 2022 and 2021 is as follows (in thousands):

Balance, January 1, 2021	$	208
Decreases related to a lapse of applicable statute of limitations	(208)
Balance, December 31, 2021	$	—
Balance, December 31, 2022	—
Balance, December 31, 2023	$	—