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INCOME TAXES
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
 
Income tax expense (benefit) consists of the following:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Current:
Federal$(310)$5,014 $1,440 $5,030 
State and local(412)185 2,115 306 
Foreign2,327 — 6,030 — 
Total current income tax expense (benefit)1,605 5,199 9,585 5,336 
Deferred:
Federal(72,709)41,759 42,963 75,822 
State and local(5,818)5,627 14,117 11,151 
Foreign(1,511)— (38)— 
Total deferred income tax expense (benefit)(80,038)47,386 57,042 86,973 
Total Income Tax Expense (Benefit)$(78,433)$52,585 $66,627 $92,309 
 
Rithm Capital intends to qualify as a REIT for each of its tax years through December 31, 2024. A REIT is generally not subject to US federal corporate income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements.
 
Rithm Capital operates various business segments, including Origination and Servicing, Asset Management, and portions of the Investment Portfolio, through TRSs that are subject to regular corporate income taxes, which have been provided for in the provision for income taxes, as applicable. Refer to Note 4 for further details.
As of September 30, 2024, Rithm Capital recorded a net deferred tax liability of $587.8 million, primarily composed of deferred tax liabilities generated through the deferral of gains from residential mortgage loans sold by the origination business and changes in fair value of MSRs, loans and swaps held within taxable entities, offset by deferred tax assets related to net operating losses and tax deductible goodwill. The net deferred tax liability is reported within accrued expenses and other liabilities in the consolidated balance sheets.