|9 Months Ended|
Sep. 30, 2022
|Income Tax Disclosure [Abstract]|
|Taxes||TaxesSunlight calculates the provision for income taxes during interim periods by applying an estimate of the forecasted annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss or loss excluding unusual or infrequently occurring discrete items) for the reporting period. The income tax benefit was $11.4 million for the nine months ended September 30, 2022. Sunlight Financial LLC, Sunlight’s accounting predecessor, is a limited liability company not subject to income taxes. Sunlight’s effective tax rate was 2.6% for the nine months ended September 30, 2022. The difference between Sunlight’s statutory and effective tax rate is primarily due to the permanent adjustments for goodwill impairment of $52.2 million, changes in the value of warrant liabilities of $2.1 million and noncontrolling interest in subsidiaries of $34.7 million.Sunlight recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes in Sunlight's Unaudited Condensed Consolidated Statements of Operations. As of September 30, 2022 and December 31, 2021, the total amount of gross interest and penalties accrued was $0.1 million and $0.0 million, respectively, which is classified as other liabilities in the Unaudited Condensed Consolidated Balance Sheets, and Sunlight did not have any material uncertain tax positions. Any uncertain tax position taken by any of the Class EX unitholders is not an uncertain tax position of Sunlight Financial LLC.|
No definition available.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef