Income Taxes (Tables)

6 Months Ended

Jun. 30, 2025

Net Operating Loss Forfeiture for Income

For the tax years ended March 31, 2025 and March 31, 2024, the Company reclassified for book purposes amounts arising from permanent book to tax differences primarily related to non-deductible excise tax paid.


	March 31, 2025			March 31, 2024
Increase (decrease) in additional paid in capital	$	(120,003	)	$	(10,676	)
Increase (decrease) in distributable earnings (accumulated loss)		120,003			10,676

Components of Distributable Paid and Earning

For income tax purposes, distributions paid to shareholders are reported as ordinary income, return of capital, long-term capital gains, or a combination thereof. The tax character of distributions paid for the three months ended June 30, 2025 and the tax year ended March 31, 2025, were as follows:


	For the tax period from April 1, 2025 through June 30, 2025		For the tax year from April 1, 2024 through March 31, 2025
Ordinary income	$	7,758,939	$	18,625,335
Long-term Capital Gain		-		-
Return of Capital		-		-
Total Distributions	$	7,758,939	$	18,625,335

As of March 31, 2025 and March 31, 2024, the components of distributable earnings on a tax basis detailed below differ from the amounts reflected in the Company’s Statements of Assets and Liabilities by temporary book or tax differences primarily arising from the tax treatment of organizational costs, the tax treatment of transaction expenses related to the Loan Portfolio Acquisition, and the tax treatment of uncrystallized capital gain incentive fees, and distributions payable.


	March 31, 2025			March 31, 2024
Undistributed ordinary income	$	9,344,744			1,782,017
Net unrealized appreciation (depreciation) on investments		(3,210,239	)		1,248,303
Capital Gain/(Loss) Carry Forwards		(285,250	)		(210,767	)
Other temporary differences		(8,211,487	)		(3,393,536	)
Total	$	(2,362,232	)	$	(573,983	)

Investments and Cash Equivalents for Federal Income tax

The following table sets forth the tax cost basis and the estimated aggregate gross unrealized appreciation and depreciation from investments and cash equivalents for federal income tax purposes as of June 30, 2025 and March 31, 2025:


	June 30, 2025			March 31, 2025
Tax cost of investments and cash equivalents		322,763,701		$	307,394,719
Unrealized appreciation		2,192,667			1,286,665
Unrealized depreciation		(3,628,011	)		(4,496,904	)
Net unrealized appreciation (depreciation) from investments and cash equivalents		(1,435,344	)	$	(3,210,239	)

Chicago Atlantic BDC, Inc. 10-Q