MACERICH COMAC
MACERICH CO Income Taxes Disclosure
Income Taxes:
For income tax purposes, distributions paid to common stockholders consist of ordinary income, capital gains, unrecaptured Section 1250 gain and return of capital or a combination thereof. The following table details the components of the distributions, on a per share basis, for the years ended December 31, 2025, 2024 and 2023:
| 2025 | 2024(1) | 2023(2) | |||||||||||||||||||||||||||||||||
| Ordinary income | $ | — | — | % | $ | — | — | % | $ | 0.36 | 53.0 | % | |||||||||||||||||||||||
| Capital gains | — | — | % | 0.36 | 52.9 | % | 0.32 | 47.0 | % | ||||||||||||||||||||||||||
| Return of capital | 0.68 | 100.0 | % | 0.32 | 47.1 | % | — | — | % | ||||||||||||||||||||||||||
| Dividends paid | $ | 0.68 | 100.0 | % | $ | 0.68 | 100.0 | % | $ | 0.68 | 100.0 | % | |||||||||||||||||||||||
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(1)The 2024 capital gains are treated as "unrecaptured Section 1250 gains."
(2)The 2023 ordinary income is treated as "qualified REIT dividends" for purposes of Section 199A of the Code and the 2023 capital gains are treated as "unrecaptured Section 1250 gains."
The Company has made Taxable REIT Subsidiary elections for all of its corporate subsidiaries other than its Qualified REIT Subsidiaries. The elections, effective for the year beginning January 1, 2001 and future years, were made pursuant to Section 856(l) of the Code.
21. Income Taxes: (Continued)
The income tax provision of the TRSs for the year ended December 31, 2025 is as follows (ASU 2023-09 Presentation):
| 2025(1)(2) | |||||
| Current tax benefit | |||||
US federal | $ | — | |||
| US state and local | — | ||||
| Total current tax benefit | $ | — | |||
| Deferred tax benefit | |||||
US federal | $ | 1,869 | |||
| US state and local | 324 | ||||
| Total deferred tax benefit | $ | 2,193 | |||
| Total income tax benefit | |||||
US federal | $ | 1,869 | |||
| US state and local | 324 | ||||
| Total income tax benefit | $ | 2,193 | |||
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(1)The Company did not make any income tax payments during 2025.
(2)The Company has no foreign income tax benefit or expense.
The income tax provision of the TRSs for the years ended December 31, 2024 and 2023 are as follows (pre-ASU 2023-09 presentation):
| 2024 | 2023 | |||||||||||||
Current | $ | — | $ | — | ||||||||||
| Deferred | 1,300 | 494 | ||||||||||||
| Income tax benefit | $ | 1,300 | $ | 494 | ||||||||||
21. Income Taxes: (Continued)
The effective income tax rate of the TRSs for the year ended December 31, 2025 is reconciled to the amount by applying the Federal Corporate tax rate as follows (ASU 2023-09 presentation):
| 2025 | |||||||||||
| Amount | Percent | ||||||||||
| $ | 2,828 | 21.0 | % | ||||||||
| State and local taxes, net of federal benefit(1) | 324 | 2.4 | % | ||||||||
| Nondeductible expenses(2): | |||||||||||
| Executive compensation: LTI Units | (792) | (5.9) | % | ||||||||
| Restricted stock units | 208 | 1.5 | % | ||||||||
| Meals | (161) | (1.2) | % | ||||||||
| Life insurance | (223) | (1.7) | % | ||||||||
| Other nontaxable or nondeductible items | 9 | 0.1 | % | ||||||||
| Income tax benefit | $ | 2,193 | 16.2 | % | |||||||
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(1)The state and local income tax effect is primarily attributable to California, New York State and New York City, and Virginia
(2)The significant items within nontaxable or nondeductible items relate primarily to executive compensation limitations (LTI Units), equity compensation permanent differences, and nondeductible meals and life insurance.
The income tax provision of the TRSs for the years ended December 31, 2024 and 2023 are reconciled to the amount computed by applying the Federal Corporate tax rate as follows (pre-ASU 2023-09 presentation):
| 2024 | 2023 | |||||||||||||
| Book loss for TRSs | $ | 9,893 | $ | 7,671 | ||||||||||
Tax at statutory rate on earnings from continuing operations before income taxes | $ | 2,078 | $ | 1,611 | ||||||||||
| State taxes | 266 | 220 | ||||||||||||
| Other | (1,044) | (1,337) | ||||||||||||
| Income tax benefit | $ | 1,300 | $ | 494 | ||||||||||
The tax effects of temporary differences and carryforwards of the TRSs included in the net deferred tax assets at December 31, 2025 and 2024 are summarized as follows:
| 2025 | 2024 | ||||||||||
| Net operating loss carryforwards | $ | 14,204 | $ | 12,533 | |||||||
Property, primarily differences in depreciation and amortization, the tax basis of land assets and treatment of certain other costs | 12,516 | 11,992 | |||||||||
| Other | 797 | 799 | |||||||||
| Net deferred tax assets | $ | 27,517 | $ | 25,324 | |||||||
The net operating loss ("NOL") carryforwards for NOLs generated through the 2017 tax year are scheduled to expire through 2037, beginning in 2031. Pursuant to the Tax Cuts and Jobs Act of 2017, NOLs generated in 2018 and subsequent tax years are carried forward indefinitely.
For the years ended December 31, 2025, 2024 and 2023 there were no unrecognized tax benefits.
21. Income Taxes: (Continued)
The Company is required to establish a valuation allowance for any portion of the deferred tax asset that the Company concludes is more likely than not to be unrealizable. The Company’s assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carry back years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. As of December 31, 2025, the Company had no valuation allowance recorded.
The tax years 2022 through 2024 remain open to examination by the taxing jurisdictions to which the Company is subject.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 23, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.