SLR Investment Corp. Income Taxes Disclosure
Note 8(a). Income Tax Information and Distributions to Stockholders
The tax character of distributions for the fiscal years ended December 31, 2025, 2024 and 2023 were as follows (1):
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||||||||||||||
Ordinary income |
|
$ |
87,935 |
|
|
|
98.3 |
% |
|
$ |
89,470 |
|
|
|
100.0 |
% |
|
$ |
89,470 |
|
|
|
100.0 |
% |
Capital gains |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Return of capital |
|
|
1,535 |
|
|
|
1.7 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
— |
|
Distributions recognized in subsequent year |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Total distributions |
|
$ |
89,470 |
|
|
|
100.0 |
% |
|
$ |
89,470 |
|
|
|
100.0 |
% |
|
$ |
89,470 |
|
|
|
100.0 |
% |
As of December 31, 2025, 2024 and 2023, the total accumulated earnings (loss) on a tax basis were as follows (1):
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|||
Undistributed ordinary income |
|
$ |
— |
|
|
|
$ |
7,159 |
|
|
|
$ |
1,793 |
|
|
Undistributed long-term net capital gains |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Total undistributed net earnings |
|
|
— |
|
|
|
|
7,159 |
|
|
|
|
1,793 |
|
|
Post-October capital losses |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Capital loss carryforward |
|
|
(140,961 |
) |
2 |
|
|
(142,373 |
) |
2 |
|
|
(138,561 |
) |
2 |
Other book/tax temporary differences |
|
|
2,363 |
|
|
|
|
2,363 |
|
|
|
|
2,364 |
|
|
Net unrealized appreciation |
|
|
19,022 |
|
|
|
|
7,625 |
|
|
|
|
2,567 |
|
|
Total tax accumulated loss |
|
$ |
(119,576 |
) |
|
|
$ |
(125,226 |
) |
|
|
$ |
(131,837 |
) |
|
The Company recognizes in its consolidated financial statements the tax effect of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. To the best of our knowledge, we did not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25 nor did we have any unrecognized tax benefits as of the periods presented herein. Although we file federal and state tax returns, our major tax jurisdiction is federal. Our tax returns for each of our federal tax years since 2022 remain subject to examination by the Internal Revenue Service and the state department of revenue. The capital loss carryforwards shown above do not expire.
Note 8(b). Other Tax Information (unaudited)
For the fiscal years ended December 31, 2025, 2024 and 2023, 3.82%, 12.65% and 0%, respectively of the ordinary distributions paid during the year were eligible for qualified dividend income treatment and the dividends received deduction for corporate stockholders. For the fiscal years ended December 31, 2025, 2024, and 2023, 87.29%, 86.46% and 90.05%, respectively, of each of the ordinary distributions paid during the year represented interest-related dividends. For the fiscal years ended December 31, 2025, 2024 and 2023, none of the distributions represented short-term capital gains dividends.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
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.