Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The components of income tax expense (benefit) are as follows:

A reconciliation of the U.S. federal rate to the Company’s effective income tax rate is as follows:


	Years Ended December 31,
	2022				2021				2020
	Amount		Percent		Amount		Percent		Amount		Percent

	(dollars in millions)
Expected U.S. federal income taxes at statutory rate	$	(607)	21.0	%	$	(60)	21.0	%	$	(97)	21.0	%

Loss attributable to non-controlling interests	274		(9.5)	%	32		(11.2)	%	62		(13.5)	%
State taxes	(64)		2.2	%	(8)		2.8	%	(9)		2.0	%
Stock based compensation	—		—	%	(16)		5.6	%	(5)		1.1	%
Valuation allowance	398		(13.7)	%	53		(18.5)	%	56		(12.0)	%
Effect due to LLC flow-through structure	—		—	%	—		—	%	(7)		1.5	%

Income tax expense (benefit)	$	1	—	%	$	1	(0.3)	%	$	—	0.1	%

The components of the Company’s deferred tax assets are as follows:


		Years Ended December 31,
		2022		2021

		(in millions)
Deferred tax assets:
	Investment in Carvana Group	$	1,471	$	1,391
	Net operating loss carryforward	451		193
	Interest expense carryforward	130		50
	Tax credit carryforward	6		4
	Other	2		1
	Total gross deferred tax assets	2,060		1,639
Valuation allowance		(2,058)		(1,638)
Total deferred tax assets, net of valuation allowance		$	2	$	1

Deferred tax liabilities:
	Intangibles	$	(1)	$	(1)

	Total deferred tax assets and liabilities	$	1	$	—