Silvercrest Asset Management Group Inc. Income Taxes Disclosure

14. INCOME TAXES

Income before tax expense for 2025 was $11,047. Of this amount $12,622 is from domestic sources and ($1,575) is from foreign sources. Income before tax expense for 2024 was $20,272. Of this amount $21,288 is from domestic sources and ($1,016) is from foreign sources. Income before tax expense for 2023 was $19,493. Of this amount $19,921 is from domestic sources and ($428) is from foreign sources.

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their bases for income tax purposes.

As of December 31, 2025 and 2024, the Company had a net deferred tax asset of $1,110 and $3,924, respectively.

As of December 31, 2025, the Company had net tax receivables of $1,897 which consisted of net federal and state and local tax of $977 and $920, respectively. As of December 31, 2024, the Company had net tax receivables of $ 1,151 which consisted of net federal and state and local tax receivables of $660 and $491, respectively.

During the year ended December 31, 2025, the Company recorded a deferred tax asset associated with net operating losses of its foreign subsidiary. Realization of the deferred tax asset is contingent on the foreign subsidiary generating future taxable income. Given the foreign subsidiary has recently initiated operations and does not yet have a history of sales, the Company has concluded that the deferred tax asset does not currently meet the more-likely-than-not threshold for realizability. Accordingly, a full valuation allowance has been recorded with respect to the net operating losses of the Company’s foreign subsidiary in the amount of $598 as of December 31, 2025. The amount of valuation allowance as of December 31, 2024 was $308.

In the normal course of business, the Company is subject to examination by federal, state, and local tax regulators. As of December 31, 2025, the Company’s U.S. federal income tax returns for the years 2022 through 2025 are open under the normal three-year statute of limitations and therefore subject to examination.

The guidance for accounting for uncertainty in income taxes prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. During the year ending December 31, 2025, the Company has reserved a total of $318 related to unrecognized tax benefits. If recognized, the above tax benefits would reduce the annual effective rate. The Company believes the liability established for unrecognized tax benefits is adequate in relation to the potential for additional assessments. The Company will reassess these amounts annually. The Company did not have any reserve related to unrecognized tax benefits as of December 31, 2024 and 2023.

The unrecognized tax benefits are recorded in Deferred tax and other liabilities in the Consolidated Statements of Financial Condition.