deferred tax

Definition

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.

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

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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.

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cash flows from operating activities variable prepaid forward contract