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Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents the Company’s provision (benefit) for income taxes reflected as a component of income (loss):
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2022202120222021
Total income tax expense (benefit)$5,068 $237 $31,537 $11,416 
Effective tax rate (ETR)20.2 %
(1)
6.6 %
(2)
108.9 %
(3)
21.0 %
(4)
(1) Lower than the U.S. federal statutory income tax rate of 21% primarily due to the impact of discrete items, partially offset by state taxes.
(2) Lower than the U.S. federal statutory income tax rate of 21% primarily due to the impact of the effect of foreign operations and discrete items, partially offset by state taxes.
(3) Higher than the U.S. federal statutory income tax rate of 21%, primarily due to the impact of deconsolidation of insurance subsidiaries for tax as a result of the WP Transaction.
(4) Equal to the U.S. federal statutory income tax rate of 21% due to the impact of state taxes offset by other discrete items.

On June 21, 2022, the WP Transaction was completed, in which Warburg invested $200,000 in Tiptree’s insurance subsidiary, Fortegra. The WP Transaction, along with Fortegra management’s ownership, reduced Tiptree’s ownership in Fortegra below 80% such that, while still consolidated for GAAP financial reporting purposes, Fortegra will no longer be included in the consolidated tax return group with Tiptree. Tiptree has recorded deferred tax liabilities related to the basis difference in Tiptree’s investment in Fortegra as of September 30, 2022. This deferred tax liability represents the tax that would be due, before consideration of loss carryforwards, if Tiptree were to sell any of its Fortegra stock at its carrying value on Tiptree’s balance sheet. The deferred tax liability as of September 30, 2022 relating to the WP Transaction was $38,168, of which $14,064 was recorded directly in Tiptree Inc. stockholders’ equity with respect to the gain component and $24,104 was recorded as a provision for income taxes in the condensed consolidated statements of operations for the nine months ended September 30, 2022.