Marcus & Millichap, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Components of Provision for Income Taxes and Income before Provision for Income Taxes

The provision for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income before provision for income taxes and consisted of the following (dollars in thousands):


	Three Months Ended September 30,												Nine Months Ended September 30,
	2021						2020						2021						2020
	Amount			Rate			Amount			Rate			Amount			Rate			Amount			Rate

Income tax expense at the federal statutory rate	$	9,627			21.0	%	$	1,671			21.0	%	$	23,052			21.0	%	$	5,689			21.0	%
State income tax expense, net of federal benefit		2,111			4.6	%		453			5.7	%		5,157			4.7	%		1,403			5.2	%
(Windfall) shortfall tax benefits, net related to stock-based compensation		(443	)		(1.0	)%		130			1.6	%		(522	)		(0.5	)%		203			0.7	%
Change in valuation allowance		55			0.1	%		134			1.7	%		243			0.2	%		594			2.2	%
Permanent and other items (1)		571			1.3	%		(472	)		(5.9	)%		1,374			1.3	%		(14	)		—

	$	11,921			26.0	%	$	1,916			24.1	%	$	29,304			26.7	%	$	7,875			29.1	%

(1)	Permanent items relate principally to compensation charges, qualified transportation fringe benefits and meals and entertainment.