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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table details the Company’s provision for income taxes:
Year Ended December 31,
202320222021
Current
Federal$240 $(162)$8,936 
State139 846 3,120 
Total current379 684 12,056 
Deferred
Federal(27,512)(66,624)26,623 
State(15,663)(13,652)4,692 
Total deferred(43,175)(80,276)31,315 
Total (benefit) provision for income taxes$(42,796)$(79,592)$43,371 

The following table is a reconciliation of the estimated provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective tax rate:
Year Ended December 31,
202320222021
Federal income tax at statutory rate21.0 %21.0 %21.0 %
State and local income taxes (net of federal benefit)2.8 3.0 0.9 
Non-controlling interests(9.5)(10.3)(16.2)
Goodwill impairment— (0.6)— 
State rate change1.9 (1.5)— 
Change in valuation allowance0.1 (0.1)— 
Other, net(0.9)— 0.8 
Effective income tax rate15.4 %11.5 %6.5 %
The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to income passed through to noncontrolling interests. Prior to the IPO, income taxes for LD Holdings at the consolidated level were primarily federal, state, and local taxes for ACT, a C Corporation. Subsequent to the IPO, the Company became a C Corporation subject to federal, state, and local income taxes with respect to its share of net taxable income of LD Holdings.

Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following:
December 31,
20232022
Deferred tax assets:
Accrued compensation$16 $41 
Net operating loss87,978 70,010 
Tax credits421 447 
Depreciation8 7 
Acquired intangible assets157 — 
Charitable contributions carryover83 — 
Gross deferred tax assets before valuation allowance88,663 70,505 
Valuation allowance(314)(386)
Net deferred tax assets88,349 70,119 
Deferred tax liabilities:
Outside basis difference166,544 191,437 
Acquired intangible assets— 145 
Total deferred tax liabilities166,544 191,582 
Net deferred tax liabilities$(78,195)$(121,463)

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The deferred tax liability as of December 31, 2023 relates to temporary outside basis differences in the book basis as compared to the tax basis of loanDepot, Inc.’s investment in LD Holdings, net of tax benefits from future deductions for payments made under the TRA as a result of the offering transaction. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the Company’s effective tax rate in the future. Deferred income taxes are measured using the applicable tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on the tax rates that have been enacted at the reporting date. The Company measured its deferred tax assets and liabilities at December 31, 2023 and 2022 using the combined federal and state rate (less federal benefit) of 26.2% and 27.4%, respectively. The Company establishes a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. In determining the need for a valuation allowance, the Company considered all negative and positive evidence. As of December 31, 2023, the Company established a valuation allowance on tax credits that have a limited carryforward period and may expire prior to the Company being able to utilize them. The Company did not establish a valuation allowance for the remaining deferred tax assets as the Company believes it is more-likely-than not that the Company will realize the benefits of the deferred tax assets. The Company recognized a TRA liability of $57.3 million and $50.7 million as of December 31, 2023 and 2022, respectively, which represents the Company’s estimate of the aggregate amount that it will pay under the TRA as a result of the offering transaction, refer to Note 19- Commitments and Contingencies, for further information on the TRA liability.

Uncertain tax positions relate to various federal and state income tax matters. The income tax returns for 2019-2023 are subject to examination by the relevant taxing authorities. There was no interest or penalties related to uncertain tax positions
for the years ended December 31, 2023, 2022, and 2021, respectively. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows:
Year Ended December 31,
202320222021
Beginning balance$497 $654 $— 
Increases related to positions taken during prior years— — 540 
Increases related to positions taken during the current year— — 114 
Increases related to positions settled with tax authorities212 — — 
Decreases due to a lapse of applicable statute of limitations(70)(157)— 
Ending balance$639 $497 $654