deferred tax


A liability that results from income that has already been earned for accounting purposes but not for tax purposes.

Use deferred tax in a sentence

You need to make sure that you know how much the deferred tax will be and follow through with all that you will owe.

​ Was this Helpful? YES  NO 7 people found this helpful.

As a cash basis taxpayer the business had a deferred tax liability related to the balance in its accounts receivable.

​ Was this Helpful? YES  NO 2 people found this helpful.

John puts money into his 401k and therefore maxes it out to take big time advantage of the deferred tax it promises, so that he can deal with it later.

​ Was this Helpful? YES  NO 10 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
other long term liabilities tax