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INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Distribution Our distributions for the tax years ended December 31, 2024, 2023 and 2022 were as follows:
Payment DateCash Dividend
Tax Year Ended December 31, 2024
March 31, 20241
$0.63 
June 30, 20241
0.63 
September 30, 20241
0.64 
December 31, 20242
0.63 
$2.53 
Tax Year Ended December 31, 2023
March 31, 20232
$0.58 
June 30, 20232
0.59 
September 30, 20231
0.62 
December 31, 20231
0.63 
$2.42 
Tax Year Ended December 31, 2022
March 31, 2022$0.48 
June 30, 20223
0.63 
September 30, 20220.50 
December 31, 20222
0.57 
$2.18 
1.On each of these dates, the dividend paid included a supplemental dividend of $0.06 per share.
2.On each of these dates, the dividend paid included a supplemental dividend of $0.05 per share.
3.On June 30, 2022, the dividend paid included a special dividend of $0.15 per share.
The tax character of distributions paid for the tax years ended December 31, 2024 and 2023 was as follows (amounts in thousands):
Twelve Months Ended December 31,
20242023
Ordinary income$118,216 $94,139 
Distributions of long term capital gains— — 
Distributions on tax basis1
$118,216 $94,139 
1Includes only those distributions which reduce estimated taxable income.
Schedule of Book and Tax Basis Differences Relating to Dividends and Distributions
Book and tax basis differences relating to dividends and distributions to our shareholders and other permanent book and tax differences are typically reclassified among the CSWC’s capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP; accordingly, for the years ended March 31, 2025 and 2024, CSWC reclassified for book purposes amounts arising from permanent book/tax differences related to the tax treatment of return of capital and/or deemed distributions, tax treatment of investments upon disposition, and non-deductible expenses, as follows (amounts in thousands):
Years Ended March 31,
20252024
Additional capital$(18,532)$(8,849)
Total distributable earnings18,532 8,849 
Schedule of Net Assets Resulting from Operations to Estimated RIC Taxable Income
The following reconciles net increase in net assets resulting from operations to estimated RIC taxable income for the year ended March 31, 2025 and 2024:
Years Ended March 31,
Reconciliation of RIC Distributable Income1
202520242023
Net increase in net assets from operations$70,548 $83,389 $33,093 
Net unrealized (appreciation) depreciation on investments(2,423)(13,640)18,589 
(Expense/loss) income/gain recognized for tax on pass-through entities(80)(6,383)962 
Realized loss (gain) book/tax differences(10,876)18,962 (389)
Capital loss carryover2
70,883 26,449 12,796 
Net operating income - wholly-owned subsidiary(14,568)(5,194)809 
Dividend income from wholly-owned subsidiary9,038 2,000 1,068 
Non-deductible tax expense1,424 921 628 
Loss on extinguishment of debt(2,726)(2,726)(2,726)
Non-deductible compensation6,693 3,665 3,243 
Compensation related book/tax differences(2,741)1,116 812 
Interest on non-accrual loans11,999 5,636 3,343 
Other book/tax differences(187)1,515 107 
Estimated distributable income before deductions for distributions$136,984 $115,710 $72,335 
Distributions3:
    Ordinary$123,569 $101,517 $70,034 
Estimated annual RIC undistributed taxable income$13,415 $14,193 $2,301 

1The calculation of taxable income for each period is an estimate and will not be finally determined until the Company files its tax return each year. Final taxable income may be different than this estimate.
2At March 31, 2025, the Company had long-term capital loss carryforwards of $131.0 million to offset future capital gains. These capital loss carryforwards are not subject to expiration.
3Includes only those distributions which reduce estimated distributable income.
Schedule of Components of Estimated Tax Basis RIC Accumulated Earnings
As of March 31, 2025, 2024 and 2023, the components of estimated RIC accumulated earnings on a tax basis were as follows (amounts in thousands):
Years Ended March 31,
Components of RIC Accumulated Earnings on a Tax Basis1
202520242023
Undistributed ordinary income - tax basis$41,594 $28,845 $16,070 
Undistributed net realized (loss) gain(130,951)(60,056)(30,201)
Unrealized (depreciation) appreciation on investments(80,308)(68,529)(61,710)
Other temporary differences(4,201)(9,584)(13,639)
Components of distributable earnings at year-end$(173,866)$(109,324)$(89,480)
Schedule of Deferred Tax Assets and Liabilities
The following table sets forth the significant components of the deferred tax assets and liabilities as of March 31, 2025 and March 31, 2024 (amounts in thousands):
March 31, 2025March 31, 2024
Deferred tax asset:
Net operating loss carryforwards$253 $159 
Interest1,811 965 
Total deferred tax asset2,064 1,124 
Deferred tax liabilities:
Net unrealized appreciation on investments(15,054)(11,395)
Net basis differences in portfolio investments(3,790)(1,726)
Total deferred tax liabilities(18,844)(13,121)
Total net deferred tax (liabilities) assets$(16,780)$(11,997)
Schedule of Significant Components of Income Tax Provision The following table sets forth the significant components of income tax provision as of March 31, 2025 and 2024 (amounts in thousands):
Years Ended March 31,
Components of Income Tax Provision202520242023
Excise tax$1,351 $872 $630 
Tax provision related to Taxable Subsidiary841 22 (301)
Other73 50 — 
Total income tax provision$2,265 $944 $329