Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Significant Components of Income Tax Expense

During the period July 10, 2021 through December 31, 2021, the significant components of income tax expense consisted of the following:


	For the Period July 10, 2021 to December 31, 2021
Net Income (Loss) Before Income Taxes	$	(250,588)

Income Tax Expense (Benefit)
Current
Federal	$	1,708
State and local	312
	2,020
Deferred
Federal	(4,603)
State and local	(921)
	(5,524)
Total
Federal	(2,895)
State and local	(609)
	$	(3,504)

Schedule of Effective Income Tax Rate Reconciliation

During the period July 10, 2021 through December 31, 2021, Sunlight’s effective income tax rate varied from the U.S. statutory tax rate that was in effect during the period as follows:


	For the Period July 10, 2021 to December 31, 2021
Net Income (Loss) Before Income Taxes	$	(250,588)
Statutory U.S Income Tax Rate	21.0		%
Income tax expense (benefit), at statutory U.S. federal rate	$	(52,623)		21.0	%

State and local taxes	(674)			0.3
Goodwill impairment	30,658			(12.2)
Change in fair value of warrant liabilities	(3,081)			1.2
Noncontrolling interests in loss of consolidated subsidiaries	18,390			(7.3)
Business Combination compensation expense	3,662			(1.5)
Other	164			(0.1)

Income tax expense (benefit)	$	(3,504)		1.4

Components of Deferred Tax Assets and Deferred Tax Liabilities

Deferred income taxes are recognized for the future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities. The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities are as follows:


	For the Period July 10, 2021 to December 31, 2021








Deferred tax liabilities


Investment in Sunlight Financial LLC	(36,686)
Deferred tax asset (liability), net	$	(36,686)